Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 3, Problem 1Q
Identify which costing system—job order or process cost—the following companies would primarily use: (a) Quaker Oats, (b) Jif Peanut Butter, (c) Gulf Craft (luxury yachts), and (d) Warner Bros. Motion Pictures.
Expert Solution & Answer
To determine
Identify the costing system that the given companies would use.
Answer to Problem 1Q
Identify the costing system that the given companies would use.
- a. Costing system used by Q Company would be process costing.
- b. Costing system used by J Company would be process costing.
- c. Costing system used by G Company would be job costing.
- d. Costing system used by W Company would be job costing.
Explanation of Solution
Job Costing: It involves products, which are unique or distinguished from other products. Because of the uniqueness of the product, the production cost is regarded for a specific product. It is used for short production runs.
Process Costing: It involves products, which are not unique or standardized products; it involves the products, which have long production runs.
Identify the costing system that the given companies would use.
- a. Q Company is producing standardized product, which is also produced by many other competitors. Therefore, process costing will be used.
- b. J Company is producing standardized product, which is also produced by many other competitors, therefore process costing will be used.
- c. G Company is producing unique product, which is not produced by any other company, therefore job costing will be used.
- d. W Company is producing unique product, which is not produced by any other company, therefore job costing will be used.
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Chapter 3 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 3 - Identify which costing systemjob order or process...Ch. 3 - Contrast the primary focus of job order cost...Ch. 3 - What are the similarities between a job order and...Ch. 3 - Your roommate is confused about the features of...Ch. 3 - Sam Bowyer believes there are no significant...Ch. 3 - (a) What source documents are used in assigning...Ch. 3 - At Ely Company, overhead is assigned to production...Ch. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Sanchez Co. has zero units of beginning work in...Ch. 3 - Coats Company had zero units of beginning work in...Ch. 3 - Sanchez Co. has zero units of beginning work in...Ch. 3 - Hindi Co. started 3,000 units during the period....Ch. 3 - Clauss Company transfers out 14,000 units and has...Ch. 3 - Prob. 16QCh. 3 - What purposes are served by a production cost...Ch. 3 - As Trent Company, there are 500 units of ending...Ch. 3 - What is the difference between operations costing...Ch. 3 - How does a company decide whether to use a job...Ch. 3 - Soria Co. started and completed 2,000 units for...Ch. 3 - Reyes Company transfers out 12,000 units and has...Ch. 3 - Journalize entries for accumulating costs. (LO 2)....Ch. 3 - Data for Warner Company are given in BE3-1....Ch. 3 - Compute equivalent units of production. (LO 3), AP...Ch. 3 - Compute equivalent units of production. (LO 3), AP...Ch. 3 - Compute unit costs of production.. (LO 4), AP In...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Compute unit costs. (LO 4), AP Production costs...Ch. 3 - Prepare cost reconciliation schedule. (LO 4), AP...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Compute unit costs. (LO 5), AP Production costs...Ch. 3 - Indicate whether each of the following statements...Ch. 3 - Kopa Company manufactures CH-21 through two...Ch. 3 - The Assembly Department for Right pens has the...Ch. 3 - In March, Kelly Company had the following unit...Ch. 3 - Robert Wilkins has prepared the following list of...Ch. 3 - Journalize transactions. (LO 2), AP Harrelson...Ch. 3 - The ledger of American Company has the following...Ch. 3 - Journalize transaction for two processes. (LO 2),...Ch. 3 - In Shady Company, materials are entered at the...Ch. 3 - The Cutting Department of Cassel Company has the...Ch. 3 - The Sanding Department of Quik Furniture Company...Ch. 3 - The Blending Department of Luongo Company has the...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - The Polishing Department of Major Company has the...Ch. 3 - Prob. 3.12ECh. 3 - The Welding Department of Healthy Company has the...Ch. 3 - Remington Inc. is contemplating the use of process...Ch. 3 - Santana Mortgage Company uses a process cost...Ch. 3 - Compute equivalent units, unit costs, and costs...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - Compute equivalent units, unit costs, and costs...Ch. 3 - Answer questions on costs and production. (LO 5),...Ch. 3 - The Welding Department of Majestic Company has the...Ch. 3 - Fire Out Company manufactures its product,...Ch. 3 - Complete four steps necessary to prepare a...Ch. 3 - Thakin Industries Inc. manufactures dorm furniture...Ch. 3 - Rivera Company has several processing departments....Ch. 3 - Polk Company manufactures basketballs. Materials...Ch. 3 - Hamilton Processing Company uses a weighted...Ch. 3 - Determine equivalent units and unit costs and...Ch. 3 - CURRENT DESIGNS CDJ Building a kayak using the...Ch. 3 - Decision-Making Across the Organization Florida...Ch. 3 - Harris Furniture Company manufactures living room...Ch. 3 - CRITICAL THINKING Communication Activity Diane...Ch. 3 - Ethics Case R. B. Dillman Company manufactures a...Ch. 3 - In a recent year, an oil refinery Texas City,...
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