Which type of cost system, process or job order, would be best suited for each of the following: (A) TV assembler, (B) building contractor, (C) automobile repair shop, (D) paper manufacturer, (E) custom jewelry manufacturer? Give reasons for your answers.

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Answer 1

Textbook Question

Chapter 3, Problem 1DQ

Which type of cost system, process or job order, would be best suited for each of the following: (A) TV assembler, (B) building contractor, (C) automobile repair shop, (D) paper manufacturer, (E) custom jewelry manufacturer? Give reasons for your answers.

Expert Solution & Answer

To determine

Identify the following:

a) The TV assembler is a type of Job order costs or Process costs.
b) The building contractor is a type of Job order costs or Process Costs.
c) The automobile repair shop is a type of Job order costs or Process Costs.
d) The paper manufacturer is a type of Job order costs or Process Costs.
e) The custom jewelry manufacturer is a type of Job order costs or Process Costs.

Explanation of Solution

Cost Accounting Systems

Cost accounting systems are used to measure, record, and report product costs. Managers use products costs for setting product costs, controlling setups, and developing financial statements. They are two types of Cost accounting systems they are:

• Job order costs, and
• Process costs

a) Process costs systems suitable for TV assembler.
b) Job order costs suitable for Building Contractor.
c) Job order costs suitable for automobile repair shop.
d) Process costs suitable for paper manufacturer.
e) Process costs suitable for custom jewelry.
a) TV assembler is suitable for the process cost system because, the products are slightly standard and lose their identities as individual items.
b) Building contractor is suitable for Job order cost system because; the building cost can be identified with each job without great difficulty.
c) Automobile repair shop is suitable for Job order cost system because; the cost can be equitably recognized with each job.
d) Paper manufacturer is suitable for Process cost system because, manufacturing paper process endless and the products are homogeneous.
e) Custom jewelry manufacturer is suitable for job order cost system because, most of the jewelry production consists of job orders only, and the costs can be rationally recognized with each job.

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Answer 2

Textbook Question

Chapter 3, Problem 1DQ

Which type of cost system, process or job order, would be best suited for each of the following: (A) TV assembler, (B) building contractor, (C) automobile repair shop, (D) paper manufacturer, (E) custom jewelry manufacturer? Give reasons for your answers.

Expert Solution & Answer

To determine

Identify the following:

a) The TV assembler is a type of Job order costs or Process costs.
b) The building contractor is a type of Job order costs or Process Costs.
c) The automobile repair shop is a type of Job order costs or Process Costs.
d) The paper manufacturer is a type of Job order costs or Process Costs.
e) The custom jewelry manufacturer is a type of Job order costs or Process Costs.

Explanation of Solution

Cost Accounting Systems

Cost accounting systems are used to measure, record, and report product costs. Managers use products costs for setting product costs, controlling setups, and developing financial statements. They are two types of Cost accounting systems they are:

• Job order costs, and
• Process costs

a) Process costs systems suitable for TV assembler.
b) Job order costs suitable for Building Contractor.
c) Job order costs suitable for automobile repair shop.
d) Process costs suitable for paper manufacturer.
e) Process costs suitable for custom jewelry.
a) TV assembler is suitable for the process cost system because, the products are slightly standard and lose their identities as individual items.
b) Building contractor is suitable for Job order cost system because; the building cost can be identified with each job without great difficulty.
c) Automobile repair shop is suitable for Job order cost system because; the cost can be equitably recognized with each job.
d) Paper manufacturer is suitable for Process cost system because, manufacturing paper process endless and the products are homogeneous.
e) Custom jewelry manufacturer is suitable for job order cost system because, most of the jewelry production consists of job orders only, and the costs can be rationally recognized with each job.

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Answer 3

Textbook Question

Chapter 3, Problem 1DQ

Which type of cost system, process or job order, would be best suited for each of the following: (A) TV assembler, (B) building contractor, (C) automobile repair shop, (D) paper manufacturer, (E) custom jewelry manufacturer? Give reasons for your answers.

Expert Solution & Answer

To determine

Identify the following:

a) The TV assembler is a type of Job order costs or Process costs.
b) The building contractor is a type of Job order costs or Process Costs.
c) The automobile repair shop is a type of Job order costs or Process Costs.
d) The paper manufacturer is a type of Job order costs or Process Costs.
e) The custom jewelry manufacturer is a type of Job order costs or Process Costs.

Explanation of Solution

Cost Accounting Systems

Cost accounting systems are used to measure, record, and report product costs. Managers use products costs for setting product costs, controlling setups, and developing financial statements. They are two types of Cost accounting systems they are:

• Job order costs, and
• Process costs

a) Process costs systems suitable for TV assembler.
b) Job order costs suitable for Building Contractor.
c) Job order costs suitable for automobile repair shop.
d) Process costs suitable for paper manufacturer.
e) Process costs suitable for custom jewelry.
a) TV assembler is suitable for the process cost system because, the products are slightly standard and lose their identities as individual items.
b) Building contractor is suitable for Job order cost system because; the building cost can be identified with each job without great difficulty.
c) Automobile repair shop is suitable for Job order cost system because; the cost can be equitably recognized with each job.
d) Paper manufacturer is suitable for Process cost system because, manufacturing paper process endless and the products are homogeneous.
e) Custom jewelry manufacturer is suitable for job order cost system because, most of the jewelry production consists of job orders only, and the costs can be rationally recognized with each job.

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Answer 4

Textbook Question

Chapter 3, Problem 1DQ

Which type of cost system, process or job order, would be best suited for each of the following: (A) TV assembler, (B) building contractor, (C) automobile repair shop, (D) paper manufacturer, (E) custom jewelry manufacturer? Give reasons for your answers.

Expert Solution & Answer

To determine

Identify the following:

a) The TV assembler is a type of Job order costs or Process costs.
b) The building contractor is a type of Job order costs or Process Costs.
c) The automobile repair shop is a type of Job order costs or Process Costs.
d) The paper manufacturer is a type of Job order costs or Process Costs.
e) The custom jewelry manufacturer is a type of Job order costs or Process Costs.

Explanation of Solution

Cost Accounting Systems

Cost accounting systems are used to measure, record, and report product costs. Managers use products costs for setting product costs, controlling setups, and developing financial statements. They are two types of Cost accounting systems they are:

• Job order costs, and
• Process costs

a) Process costs systems suitable for TV assembler.
b) Job order costs suitable for Building Contractor.
c) Job order costs suitable for automobile repair shop.
d) Process costs suitable for paper manufacturer.
e) Process costs suitable for custom jewelry.
a) TV assembler is suitable for the process cost system because, the products are slightly standard and lose their identities as individual items.
b) Building contractor is suitable for Job order cost system because; the building cost can be identified with each job without great difficulty.
c) Automobile repair shop is suitable for Job order cost system because; the cost can be equitably recognized with each job.
d) Paper manufacturer is suitable for Process cost system because, manufacturing paper process endless and the products are homogeneous.
e) Custom jewelry manufacturer is suitable for job order cost system because, most of the jewelry production consists of job orders only, and the costs can be rationally recognized with each job.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Identify the following:

a) The TV assembler is a type of Job order costs or Process costs.
b) The building contractor is a type of Job order costs or Process Costs.
c) The automobile repair shop is a type of Job order costs or Process Costs.
d) The paper manufacturer is a type of Job order costs or Process Costs.
e) The custom jewelry manufacturer is a type of Job order costs or Process Costs.

Explanation of Solution

Cost Accounting Systems

Cost accounting systems are used to measure, record, and report product costs. Managers use products costs for setting product costs, controlling setups, and developing financial statements. They are two types of Cost accounting systems they are:

• Job order costs, and
• Process costs

a) Process costs systems suitable for TV assembler.
b) Job order costs suitable for Building Contractor.
c) Job order costs suitable for automobile repair shop.
d) Process costs suitable for paper manufacturer.
e) Process costs suitable for custom jewelry.
a) TV assembler is suitable for the process cost system because, the products are slightly standard and lose their identities as individual items.
b) Building contractor is suitable for Job order cost system because; the building cost can be identified with each job without great difficulty.
c) Automobile repair shop is suitable for Job order cost system because; the cost can be equitably recognized with each job.
d) Paper manufacturer is suitable for Process cost system because, manufacturing paper process endless and the products are homogeneous.
e) Custom jewelry manufacturer is suitable for job order cost system because, most of the jewelry production consists of job orders only, and the costs can be rationally recognized with each job.

Answer 8

Expert Solution & Answer

To determine

Identify the following:

a) The TV assembler is a type of Job order costs or Process costs.
b) The building contractor is a type of Job order costs or Process Costs.
c) The automobile repair shop is a type of Job order costs or Process Costs.
d) The paper manufacturer is a type of Job order costs or Process Costs.
e) The custom jewelry manufacturer is a type of Job order costs or Process Costs.

Explanation of Solution

Cost Accounting Systems

Cost accounting systems are used to measure, record, and report product costs. Managers use products costs for setting product costs, controlling setups, and developing financial statements. They are two types of Cost accounting systems they are:

• Job order costs, and
• Process costs

a) Process costs systems suitable for TV assembler.
b) Job order costs suitable for Building Contractor.
c) Job order costs suitable for automobile repair shop.
d) Process costs suitable for paper manufacturer.
e) Process costs suitable for custom jewelry.
a) TV assembler is suitable for the process cost system because, the products are slightly standard and lose their identities as individual items.
b) Building contractor is suitable for Job order cost system because; the building cost can be identified with each job without great difficulty.
c) Automobile repair shop is suitable for Job order cost system because; the cost can be equitably recognized with each job.
d) Paper manufacturer is suitable for Process cost system because, manufacturing paper process endless and the products are homogeneous.
e) Custom jewelry manufacturer is suitable for job order cost system because, most of the jewelry production consists of job orders only, and the costs can be rationally recognized with each job.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Identify the following:

a) The TV assembler is a type of Job order costs or Process costs.
b) The building contractor is a type of Job order costs or Process Costs.
c) The automobile repair shop is a type of Job order costs or Process Costs.
d) The paper manufacturer is a type of Job order costs or Process Costs.
e) The custom jewelry manufacturer is a type of Job order costs or Process Costs.

Answer 12

Explanation of Solution

Cost Accounting Systems

Cost accounting systems are used to measure, record, and report product costs. Managers use products costs for setting product costs, controlling setups, and developing financial statements. They are two types of Cost accounting systems they are:

• Job order costs, and
• Process costs

a) Process costs systems suitable for TV assembler.
b) Job order costs suitable for Building Contractor.
c) Job order costs suitable for automobile repair shop.
d) Process costs suitable for paper manufacturer.
e) Process costs suitable for custom jewelry.
a) TV assembler is suitable for the process cost system because, the products are slightly standard and lose their identities as individual items.
b) Building contractor is suitable for Job order cost system because; the building cost can be identified with each job without great difficulty.
c) Automobile repair shop is suitable for Job order cost system because; the cost can be equitably recognized with each job.
d) Paper manufacturer is suitable for Process cost system because, manufacturing paper process endless and the products are homogeneous.
e) Custom jewelry manufacturer is suitable for job order cost system because, most of the jewelry production consists of job orders only, and the costs can be rationally recognized with each job.

Answer 13

Ch. 3 - Which type of cost system, process or job order,...Ch. 3 - In job order cost accounting, the three elements...Ch. 3 - In a job order cost system, direct labor and...Ch. 3 - Why is the cost per equivalent unit often...Ch. 3 - What is the purpose for determining the cost per...Ch. 3 - Rameriz Company is a process manufacturer with two...Ch. 3 - What is the most important purpose of the cost of...Ch. 3 - How are cost of production reports used for...Ch. 3 - Job order versus process costing Which of the...Ch. 3 - Kraus Steel Company has two departments, Casting...

Which type of cost system, process or job order, would be best suited for each of the following: (A) TV assembler, (B) building contractor, (C) automobile repair shop, (D) paper manufacturer, (E) custom jewelry manufacturer? Give reasons for your answers.

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Chapter 3 Solutions