The Main factor to be considered for determining the Costing methods to be used is based on the type of product which is dealt in. The Business dealing with customized products shall apply Job Costing and those dealing in homogenous products shall apply Process costing . To Determine: TheFactors need to be considered for application of costing methods.

Question

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Answer 1

Question

Chapter 20, Problem 1DQ

To determine

The Main factor to be considered for determining the Costing methods to be used is based on the type of product which is dealt in. The Business dealing with customized products shall apply Job Costing and those dealing in homogenous products shall apply Process costing.

To Determine: TheFactors need to be considered for application of costing methods.

Expert Solution & Answer

Answer to Problem 1DQ

Solution: TheBusiness dealing in customized products which are made specifically as per customer requirement shall apply Job costing. However, the firms used to produce homogenous products going through different processes before being transferred to finished goods shall apply Process costing.

Explanation of Solution

The Job costing method is used for the business houses dealing in customized products produced specifically on the request of customer. Such products are unique in nature and costing involved in producing such products varies from each other. Therefore, separate job cost sheet is prepared for such specific order. The examples for such applications are Furniture made on specific request of customer, Car repairs done at car service station.

The Process costing is costing method applicable for the firms involved in the manufacturing of homogenous products and such products passes through various processes before get transferred to finished products. The Examples where such costing is applicable is fabrication of steel almirah where the product passes to different processes like fabrication, welding, fitting and painting. Another example being Car manufacturers.

Conclusion

To conclude, it can be said that when customized product is made then job costing is best technique and when homogenous products are produced then the process costing shall be applied.

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The audited accounts of Lindsay Co. for year-end August 31, 2014 show a profit of $3,115,000 after charging the following: Depreciation 430,000 Rent 175,000 Legal fees 1,350,000 Audit fees 88,000 Donations 119,000 Bad debts 242,000 Foreign Travel 395,750 Interest payments 62,375 Other Information: Legal fees are as follows: Expenses in respect of recovery of debts, $585,000 Expenses related to the increase private share capital, $765,000 Lindsay Co. donated $65,500 to UTECH University and $53,500 to HELP, a private charity registered under the Charities Act. Bad debts are as follows: A loan of $76,130 to Derek Stan who failed to repayit. $63,017, owed by Simplicity Ltd. which was declared bankrupt. The balance is a percentage of receivables at year end which is deemed to be bad. Foreign travel expense included $268,210 for a vacation package for the marketing manager’s and his family plane tickets. The remaining amount was for a business trip to meet with potential suppliers.…

Answer 2

Question

Chapter 20, Problem 1DQ

To determine

The Main factor to be considered for determining the Costing methods to be used is based on the type of product which is dealt in. The Business dealing with customized products shall apply Job Costing and those dealing in homogenous products shall apply Process costing.

To Determine: TheFactors need to be considered for application of costing methods.

Expert Solution & Answer

Answer to Problem 1DQ

Solution: TheBusiness dealing in customized products which are made specifically as per customer requirement shall apply Job costing. However, the firms used to produce homogenous products going through different processes before being transferred to finished goods shall apply Process costing.

Explanation of Solution

The Job costing method is used for the business houses dealing in customized products produced specifically on the request of customer. Such products are unique in nature and costing involved in producing such products varies from each other. Therefore, separate job cost sheet is prepared for such specific order. The examples for such applications are Furniture made on specific request of customer, Car repairs done at car service station.

The Process costing is costing method applicable for the firms involved in the manufacturing of homogenous products and such products passes through various processes before get transferred to finished products. The Examples where such costing is applicable is fabrication of steel almirah where the product passes to different processes like fabrication, welding, fitting and painting. Another example being Car manufacturers.

Conclusion

To conclude, it can be said that when customized product is made then job costing is best technique and when homogenous products are produced then the process costing shall be applied.

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Answer 3

Question

Chapter 20, Problem 1DQ

To determine

The Main factor to be considered for determining the Costing methods to be used is based on the type of product which is dealt in. The Business dealing with customized products shall apply Job Costing and those dealing in homogenous products shall apply Process costing.

To Determine: TheFactors need to be considered for application of costing methods.

Expert Solution & Answer

Answer to Problem 1DQ

Solution: TheBusiness dealing in customized products which are made specifically as per customer requirement shall apply Job costing. However, the firms used to produce homogenous products going through different processes before being transferred to finished goods shall apply Process costing.

Explanation of Solution

The Job costing method is used for the business houses dealing in customized products produced specifically on the request of customer. Such products are unique in nature and costing involved in producing such products varies from each other. Therefore, separate job cost sheet is prepared for such specific order. The examples for such applications are Furniture made on specific request of customer, Car repairs done at car service station.

The Process costing is costing method applicable for the firms involved in the manufacturing of homogenous products and such products passes through various processes before get transferred to finished products. The Examples where such costing is applicable is fabrication of steel almirah where the product passes to different processes like fabrication, welding, fitting and painting. Another example being Car manufacturers.

Conclusion

To conclude, it can be said that when customized product is made then job costing is best technique and when homogenous products are produced then the process costing shall be applied.

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Answer 4

Question

Chapter 20, Problem 1DQ

To determine

The Main factor to be considered for determining the Costing methods to be used is based on the type of product which is dealt in. The Business dealing with customized products shall apply Job Costing and those dealing in homogenous products shall apply Process costing.

To Determine: TheFactors need to be considered for application of costing methods.

Expert Solution & Answer

Answer to Problem 1DQ

Solution: TheBusiness dealing in customized products which are made specifically as per customer requirement shall apply Job costing. However, the firms used to produce homogenous products going through different processes before being transferred to finished goods shall apply Process costing.

Explanation of Solution

The Job costing method is used for the business houses dealing in customized products produced specifically on the request of customer. Such products are unique in nature and costing involved in producing such products varies from each other. Therefore, separate job cost sheet is prepared for such specific order. The examples for such applications are Furniture made on specific request of customer, Car repairs done at car service station.

The Process costing is costing method applicable for the firms involved in the manufacturing of homogenous products and such products passes through various processes before get transferred to finished products. The Examples where such costing is applicable is fabrication of steel almirah where the product passes to different processes like fabrication, welding, fitting and painting. Another example being Car manufacturers.

Conclusion

To conclude, it can be said that when customized product is made then job costing is best technique and when homogenous products are produced then the process costing shall be applied.

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Answer 5

Chapter 20, Problem 1DQ

To determine

The Main factor to be considered for determining the Costing methods to be used is based on the type of product which is dealt in. The Business dealing with customized products shall apply Job Costing and those dealing in homogenous products shall apply Process costing.

To Determine: TheFactors need to be considered for application of costing methods.

Expert Solution & Answer

Answer to Problem 1DQ

Solution: TheBusiness dealing in customized products which are made specifically as per customer requirement shall apply Job costing. However, the firms used to produce homogenous products going through different processes before being transferred to finished goods shall apply Process costing.

Explanation of Solution

The Job costing method is used for the business houses dealing in customized products produced specifically on the request of customer. Such products are unique in nature and costing involved in producing such products varies from each other. Therefore, separate job cost sheet is prepared for such specific order. The examples for such applications are Furniture made on specific request of customer, Car repairs done at car service station.

The Process costing is costing method applicable for the firms involved in the manufacturing of homogenous products and such products passes through various processes before get transferred to finished products. The Examples where such costing is applicable is fabrication of steel almirah where the product passes to different processes like fabrication, welding, fitting and painting. Another example being Car manufacturers.

Conclusion

To conclude, it can be said that when customized product is made then job costing is best technique and when homogenous products are produced then the process costing shall be applied.

Answer 6

Chapter 20, Problem 1DQ

To determine

The Main factor to be considered for determining the Costing methods to be used is based on the type of product which is dealt in. The Business dealing with customized products shall apply Job Costing and those dealing in homogenous products shall apply Process costing.

To Determine: TheFactors need to be considered for application of costing methods.

Expert Solution & Answer

Answer to Problem 1DQ

Solution: TheBusiness dealing in customized products which are made specifically as per customer requirement shall apply Job costing. However, the firms used to produce homogenous products going through different processes before being transferred to finished goods shall apply Process costing.

Explanation of Solution

The Job costing method is used for the business houses dealing in customized products produced specifically on the request of customer. Such products are unique in nature and costing involved in producing such products varies from each other. Therefore, separate job cost sheet is prepared for such specific order. The examples for such applications are Furniture made on specific request of customer, Car repairs done at car service station.

The Process costing is costing method applicable for the firms involved in the manufacturing of homogenous products and such products passes through various processes before get transferred to finished products. The Examples where such costing is applicable is fabrication of steel almirah where the product passes to different processes like fabrication, welding, fitting and painting. Another example being Car manufacturers.

Conclusion

To conclude, it can be said that when customized product is made then job costing is best technique and when homogenous products are produced then the process costing shall be applied.

Answer 7

Chapter 20, Problem 1DQ

To determine

The Main factor to be considered for determining the Costing methods to be used is based on the type of product which is dealt in. The Business dealing with customized products shall apply Job Costing and those dealing in homogenous products shall apply Process costing.

To Determine: TheFactors need to be considered for application of costing methods.

Answer 8

Expert Solution & Answer

Answer to Problem 1DQ

Solution: TheBusiness dealing in customized products which are made specifically as per customer requirement shall apply Job costing. However, the firms used to produce homogenous products going through different processes before being transferred to finished goods shall apply Process costing.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The Job costing method is used for the business houses dealing in customized products produced specifically on the request of customer. Such products are unique in nature and costing involved in producing such products varies from each other. Therefore, separate job cost sheet is prepared for such specific order. The examples for such applications are Furniture made on specific request of customer, Car repairs done at car service station.

The Process costing is costing method applicable for the firms involved in the manufacturing of homogenous products and such products passes through various processes before get transferred to finished products. The Examples where such costing is applicable is fabrication of steel almirah where the product passes to different processes like fabrication, welding, fitting and painting. Another example being Car manufacturers.

Answer 12

Conclusion

To conclude, it can be said that when customized product is made then job costing is best technique and when homogenous products are produced then the process costing shall be applied.

Answer 13

Ch. 20 - Prob. 1DQ Ch. 20 - Prob. 2DQ Ch. 20 - Prob. 3DQ Ch. 20 - Prob. 4DQ Ch. 20 - Prob. 5DQ Ch. 20 - Prob. 6DQ Ch. 20 - Prob. 7DQ Ch. 20 - Prob. 8DQ Ch. 20 - Prob. 9DQ Ch. 20 - Prob. 10DQ

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