Managerial accounting


1. (TCO F) Whether a company uses process costing or job-order costing depends on its industry. A number of companies in different industries are listed below.
i. Brick manufacturer
ii. Contract printer that produces posters, books, and pamphlets to order
iii. Natural gas production company
iv. Dairy farm
v. Coal mining company
vi. Specialty coffee roaster (roasts small batches of specialty coffee beans)

For each company, indicate whether the company is most likely to use job-order costing or process costing.
(Points : 15)       

Direct materials


Direct labor hours

1,220 labor hours

Direct labor wage rate

$15 per labor-hour

Machine Hours

1,520 machine hours

Number of units completed

4,400 units


 Units Materials Conversion
Work in process. Jan. 1 (80% complete with respect to conversion costs)100,000$100,000 $157,500
Units started into production500,000  
Costs added during the year   
    Materials  $650,000  
    Conversion   $997,500
Units completed during the year 450,000  

(TCO F) Weisinger Corporation has provided the following data for the month of January.


Raw materials


Work in process


Finished goods

Additional Information 

Raw material purchases


Direct labor costs


Manufacturing overhead cost incurred


Indirect materials included in manufacturing overhead costs incurred


Manufacturing overhead cost applied to work in process


Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form.


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