(TCO F) Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below:
i. Custom boat builder
ii. Frozen cranberry juice processor
iii. Concrete block manufacturer
iv. Winery that produces a number of varietal wines
v. Aluminum refiner that makes aluminum ingots from bauxite ore
For each company, indicate whether the company is most likely to use job-order costing or process costing.
(TCO F) Job 728 was recently completed. The following data have been recorded on its job cost sheet:
Direct labor hours
1,220 labor hours
Direct labor wage rate
$15 per labor-hour
1,520 machine hours
Number of units completed
The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $16 per machine-hour.
Compute the unit product cost that would appear on the job cost sheet for this job.
(TCO F) Miller Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information:
Work in process. Jan. 1 (80% complete with respect to conversion costs)
Units started into production
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Costs added during the year:
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Units completed during the year
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The company uses the weighted-average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs.
i. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs.
ii. Determine the cost transferred to finished goods.
iii. Determine the amount of cost that should be assigned to the ending work in process inventory.
(TCO F) Weisinger Corporation has provided the following data for the month of January:
Work In process
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.