BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 20, Problem 1DQ
Textbook Problem

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

(a)

To determine

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. There are two types of Cost accounting systems; they are:

  • Job order costs, and
  • Process costs

To Identify: The suitable cost system (Job order costs or Process costs) for TV assembler.

Answer to Problem 1DQ

Process cost system is best suitable for TV assembler.

Explanation of Solution

TV assembler is suitable for the process cost system because, the products are slightly standard and lose their identities as individual items.

Expert Solution

(b)

To determine

To Identify: The suitable cost system (Job order costs or Process costs) for building contractor.

Explanation of Solution

Building contractor is suitable for Job order cost system because; the building cost can be identified with each job without great difficulty.

Expert Solution

(c)

To determine

To Identify: The suitable cost system (Job order costs or Process costs) for automobile repair shop.

Answer to Problem 1DQ

Job order cost is best suitable for automobile repair shop.

Explanation of Solution

 Automobile repair shop is suitable for Job order cost system because; the cost can be equitably recognized with each job.

Expert Solution

(d)

To determine

To Identify: The suitable cost system (Job order costs or Process costs) for paper manufacturer.

Answer to Problem 1DQ

Process cost system is best suitable for paper manufacturer.

Explanation of Solution

Paper manufacturer is suitable for Process cost system because, manufacturing paper process endless and the products are homogeneous.

Expert Solution

(e)

To determine

To Identify: The suitable cost system (Job order costs or Process costs) for custom jewelry manufacturer.

Answer to Problem 1DQ

Process cost system is best suitable for custom jewelry.

Explanation of Solution

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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Chapter 20 Solutions

Accounting
Show all chapter solutions
Ch. 20 - Job order versus process costing Which of the...Ch. 20 - Job order versus process costing Which of the...Ch. 20 - Units to be assigned costs Eve Cosmetics Company...Ch. 20 - Units to be assigned costs Keystone Steel Company...Ch. 20 - Equivalent units of materials cost The Filling...Ch. 20 - Equivalent units of materials cost The Rolling...Ch. 20 - Equivalent units of conversion costs The Filling...Ch. 20 - Equivalent units of conversion costs The Rolling...Ch. 20 - Cost per equivalent unit The cost of direct...Ch. 20 - Cost per equivalent unit The cast of direct...Ch. 20 - Cost of units transferred out and ending work in...Ch. 20 - Cost of units transferred out and ending work in...Ch. 20 - Process cost journal entries The cost of materials...Ch. 20 - Process cost journal entries The cost of materials...Ch. 20 - Using process costs for decision making The costs...Ch. 20 - Using process costs for decision making The costs...Ch. 20 - Entries for materials cost flows in a process cost...Ch. 20 - Flowchart of accounts related to service and...Ch. 20 - Entries for flow of factory costs for process cost...Ch. 20 - Factory overhead rate, entry for applying factory...Ch. 20 - Equivalent units of production The Converting...Ch. 20 - Equivalent units of production Units of production...Ch. 20 - Equivalent units of production The following...Ch. 20 - Costs per equivalent unit a. Based on the data in...Ch. 20 - Equivalent units of production Kellogg Company...Ch. 20 - Costs per equivalent unit Georgia Products Inc....Ch. 20 - Equivalent units of production and related costs...Ch. 20 - Cost of units completed and in process a. Based on...Ch. 20 - Errors in equivalent unit computation Napco...Ch. 20 - Cost per equivalent unit The following information...Ch. 20 - Costs per equivalent unit and production costs...Ch. 20 - Cost of production report The debits to Work in...Ch. 20 - Cost of production report The Culling Department...Ch. 20 - Cost of production and journal entries AccuBlade...Ch. 20 - Cost of production and journal entries Lighthouse...Ch. 20 - Process costing for a service company Madison...Ch. 20 - Decision making Mystic Bottling Company bottles...Ch. 20 - Decision making Fix Paper Inc. produces...Ch. 20 - Lean manufacturing The following are some quotes...Ch. 20 - Equivalent units of production: average cost...Ch. 20 - Equivalent units of production: average cost...Ch. 20 - Equivalent units of production: average cost...Ch. 20 - Equivalent units of production and related costs...Ch. 20 - Cost per equivalent unit: average cost method The...Ch. 20 - Cost of production report: average cost method The...Ch. 20 - Cost of production report: average cost method...Ch. 20 - Entries for process cost system Pori Ormond Carpel...Ch. 20 - Cost of production report Arabica Highland Coffee...Ch. 20 - Equivalent units and related costs; cost of...Ch. 20 - Work in process account data for two months; cost...Ch. 20 - Cost of production report: average cost method...Ch. 20 - Entries for process cost system Preston Grover...Ch. 20 - Cost of production report Bavarian Chocolate...Ch. 20 - Equivalent units and related costs; cost of...Ch. 20 - Work in process account data for two months; cost...Ch. 20 - Cost of production report: average cost method...Ch. 20 - Ethics in Action Assume that you are the division...Ch. 20 - Communication Jamarcus Bradshaw, plant, manager of...Ch. 20 - Accounting for materials costs In papermaking...Ch. 20 - Analyzing unit costs Midstate Containers Inc....

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