Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 4, Problem 4.21E
(10 min)
In each of the following situations, determine whether job costing or process costing would be more appropriate.
| a. A CPA firm | l. A landscaping company |
| b. An oil refinery | m. An orange juice concentrate producer |
| c. A custom furniture manufacturer | n. A movie studio |
| d. A tire manufacturer | o. A law firm |
| e. A textbook publisher | p. A commercial aircraft manufacturer |
| f. A home builder | q. A management consulting firm |
| g. An advertising agency | r. A cell phone battery manufacturer |
| h. A dairy | s. A catering service |
| i. A flour mill | t. A paper mill |
| j. A paint manufacturer | u. A computer repair shop |
| k. A nursing home |
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Distinguishing between job order costing and process costing
Would the following companies most likely use job order costing or process costing?
a. A manufacturer of refrigerators
b. A manufacturer of specialty wakeboards
c. A manufacturer of luxury yachts
d. A professional services firm
e. A landscape contractor
f. A custom home builder
g. A cell phone manufacturer
h. A manufacturer of frozen pizzas
i. A manufacturer of multivitamins
j. A manufacturer of tennis shoes
Chapter 3 discusses job costing. Process costing was briefly discussed. Which company listed below would most likely use process costing.
A. Engineering firm
B. Law firm
C. custom jewelry maker
D. soda pop manufacturer
A job order costing system is most likely used by which of the following?
Group of answer choices
A. a pet food manufacturer
B. a paper manufacturing company
C. an accounting firm specializing in tax returns
D. a stereo manufacturing company
Chapter 4 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 4 - Define cost pool, cost tracing, cost allocation,...Ch. 4 - How does a job-costing system differ from a...Ch. 4 - Why might an advertising agency use job costing...Ch. 4 - Describe the seven steps in job costing.Ch. 4 - Give examples of two cost objects in companies...Ch. 4 - Describe three major source documents used in...Ch. 4 - What is the advantage of using computerized source...Ch. 4 - Give two reasons why most organizations use an...Ch. 4 - Distinguish between actual costing and normal...Ch. 4 - Describe two ways in which a house-construction...
Ch. 4 - Comment on the following statement: In a...Ch. 4 - Describe three different debit entries to the...Ch. 4 - Describe three alternative ways to dispose of...Ch. 4 - When might a company use budgeted costs rather...Ch. 4 - Prob. 4.15QCh. 4 - Which of the following does not accurately...Ch. 4 - Sturdy Manufacturing Co. assembled the following...Ch. 4 - For which of the following industries would...Ch. 4 - ABC Company uses job-order costing and has...Ch. 4 - Under Stanford Corporations job costing system,...Ch. 4 - (10 min) Job costing, process costing. In each of...Ch. 4 - Actual costing, normal costing, accounting for...Ch. 4 - Job costing, normal and actual costing. Atkinson...Ch. 4 - Budgeted manufacturing overhead rate, allocated...Ch. 4 - Job costing, accounting for manufacturing...Ch. 4 - Job costing, consulting firm. Frontier Partners, a...Ch. 4 - Time period used to compute indirect cost rates....Ch. 4 - Accounting for manufacturing overhead. Creative...Ch. 4 - Job costing, journal entries. The University of...Ch. 4 - Journal entries, T-accounts, and source documents....Ch. 4 - Job costing, journal entries. Donald Transport...Ch. 4 - Job costing, unit cost, ending work in process....Ch. 4 - Job costing; actual, normal, and variation from...Ch. 4 - Job costing; variation on actual, normal, and...Ch. 4 - Proration of overhead. The Ride-On-Wave Company...Ch. 4 - Job costing, accounting for manufacturing...Ch. 4 - Service industry, job costing, law firm. Kidman ...Ch. 4 - Service industry, job costing, two direct- and two...Ch. 4 - Proration of overhead. (Z. Iqbal, adapted) The Zaf...Ch. 4 - Normal costing, overhead allocation, working...Ch. 4 - Proration of overhead with two indirect cost...Ch. 4 - General ledger relationships, under- and...Ch. 4 - Overview of general ledger relationships. Estevez...Ch. 4 - Allocation and proration of overhead. Resource...Ch. 4 - (2530 min.) Job costing, ethics. Joseph Underwood...Ch. 4 - Job costingservice industry. Market Pulse performs...
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- Job-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_forwardWhich 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.arrow_forwardA job order costing system is most likely used by which of the following? a pet food manufacturer a paper manufacturing company an accounting firm specializing in tax returns a stereo manufacturing companyarrow_forward
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