Managerial Accounting, Student Value Edition Plus NEW MyLab Accounting with Pearson eText -- Access Card Package (4th Edition)
4th Edition
ISBN: 9780133849332
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 5.58ACT
Discussion Questions
- 1. What characteristics of the product or manufacturing process would lead a company to use a
process costing system? Give two examples of companies that are likely to be using process costing. What characteristics of the product or manufacturing process would lead a company to use ajob costing system? Give two examples of companies that are likely to be using job costing. - 2. How are process costing and job costing similar? How are they different?
- 3. What are conversion costs? In a job costing system, at least some conversion costs are assigned directly to products. Why do all conversion costs need to be assigned to processing departments in a process costing system?
- 4. Why not assign all costs of production during a period to only the completed units? What happens if a company does this? Why are the costs of production in any period allocated between completed units and units in work in process? Is there any situation where a company can assign all costs of production during a period to the completed units? If so, when?
- 5. What information generated by a process costing system can be used by management? How can management use this process costing information?
- 6. Why are the equivalent units for direct materials often different from the equivalent units for conversion costs in the same period?
- 7. Describe the flow of costs in a process costing system. List each type of
journal entry that would be made and describe the purpose of that journal entry. - 8. If a company has very little or no inventory, what effect does that lack of inventory have on its process costing system? What other benefits result from having very little to no inventory?
- 9. How does process costing differ between a first processing department and a second or later processing department?
- 10. “Process costing is easier to use than job costing.” Do you agree or disagree with this statement? Explain your reasoning.
- 11. Think of a business or an organization that would use process costing. What types of waste are likely to be generated during the manufacturing process? Are there ways to avoid this waste or minimize it? How might
managerial accounting support the efforts to reduce waste in the production process? - 12. Provide an example of how a company may change its processes to make its manufacturing more efficient or environmentally sustainable. How will the company benefit?
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Chapter 5 Solutions
Managerial Accounting, Student Value Edition Plus NEW MyLab Accounting with Pearson eText -- Access Card Package (4th Edition)
Ch. 5 - Prob. 1QCCh. 5 - 2. (Learning Objective 2) Conversion costs consist...Ch. 5 - Prob. 3QCCh. 5 - Prob. 4QCCh. 5 - Prob. 5QCCh. 5 - Prob. 6QCCh. 5 - Prob. 7QCCh. 5 - Prob. 8QCCh. 5 - Prob. 9QCCh. 5 - Prob. 10QC
Ch. 5 - Prob. 5.1SECh. 5 - Prob. 5.2SECh. 5 - Prob. 5.3SECh. 5 - Prob. 5.4SECh. 5 - Prob. 5.5SECh. 5 - Prob. 5.6SECh. 5 - Prob. 5.7SECh. 5 - Prob. 5.8SECh. 5 - Prob. 5.9SECh. 5 - Prob. 5.10SECh. 5 - Prob. 5.11SECh. 5 - Prob. 5.12SECh. 5 - Prob. 5.13SECh. 5 - Prob. 5.14SECh. 5 - Prob. 5.15SECh. 5 - Prob. 5.16SECh. 5 - Prob. 5.17SECh. 5 - Prob. 5.18SECh. 5 - Prob. 5.19SECh. 5 - Prob. 5.20SECh. 5 - Prob. 5.21SECh. 5 - Prob. 5.22SECh. 5 - Prob. 5.23SECh. 5 - Prob. 5.24AECh. 5 - Prob. 5.25AECh. 5 - Prob. 5.26AECh. 5 - Prob. 5.27AECh. 5 - Prob. 5.28AECh. 5 - Prob. 5.29AECh. 5 - Prob. 5.30AECh. 5 - Prob. 5.31AECh. 5 - Prob. 5.32AECh. 5 - Prob. 5.33AECh. 5 - Prob. 5.34AECh. 5 - Prob. 5.35AECh. 5 - Prob. 5.36BECh. 5 - E5-37B Summarize physical units and compute...Ch. 5 - Prob. 5.38BECh. 5 - Prob. 5.39BECh. 5 - Prob. 5.40BECh. 5 - Prob. 5.41BECh. 5 - Prob. 5.42BECh. 5 - Prob. 5.43BECh. 5 - Prob. 5.44BECh. 5 - Prob. 5.45BECh. 5 - Prob. 5.46BECh. 5 - Prob. 5.47BECh. 5 - Prob. 5.48APCh. 5 - Prob. 5.49APCh. 5 - Prob. 5.50APCh. 5 - P5-51A Prepare a production cost report and...Ch. 5 - Prob. 5.52APCh. 5 - Prob. 5.53BPCh. 5 - P5-54B Process costing in a first department...Ch. 5 - Prob. 5.55BPCh. 5 - P5-56B Prepare a production cost report and...Ch. 5 - Prob. 5.57BPCh. 5 - Discussion Questions 1. What characteristics of...Ch. 5 - Prob. 5.59ACTCh. 5 - A5-60 Ethics and physical inventory counts...Ch. 5 - Process costing and hybrid costing issues...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Why are there conversion costs in both job order costing and process costing?arrow_forwardGive some examples of service firms that might use job-order costing, and explain why it is used in those firms.arrow_forwardCan process costing be used for a service organization? Explain. Describe how process costing can be used for JIT manufacturing firms.arrow_forward
- Which of the following product situations is better suited to job order costing than to process costing? A. Each product batch is exactly the same as the prior batch. B. The costs are easily traced to a specific product. C. Costs are accumulated by department. D. The value of work in process is based on assigning standard costs.arrow_forwardWhy are the accounting requirements for job-order costing more demanding than those for process costing?arrow_forwardWhat are the similarities in and differences between the manufacturing cost flows for job-order firms and process firms?arrow_forward
- Explain the concept of a cost/benefit decision and how it relates to job costing systems.arrow_forwardWhich of the following production characteristics is better suited for process costing and not job order costing? Each product batch is distinguishable from the prior batch. The costs are easily traced to a specific product. Costs are accumulated by department. The value of work in process is the direct material used, the direct labor incurred, and the overhead applied to the job in process.arrow_forwardHow is a job order cost system used in a service industry?arrow_forward
- Job order versus process costing Which of the following industries would typically use job order costing, and which would typically use process costing?arrow_forwardJob-Order Costing versus Process Costing a. Auto manufacturing b. Dental services c. Auto repair d. Costume making Required: CONCEPTUAL CONNECTION For each of the given types of industries, give an example of a firm that would use job-order costing. Then, give an example of a firm that would use process costing.arrow_forwardExplain how process costing differs from job order costing.arrow_forward
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