The computer workstation furniture manufacturing that Santana Rey started is progressing well. At...
Question:
The computer workstation furniture manufacturing that Santana Rey started is progressing well. At this point, Santana is using a job order costing system to account for the production costs of this product line. Santana has heard about process costing and is wondering whether process costing might be a better method for her to keep track of and monitor her production costs.
1. What are the features that distinguish job order costing from process costing?
2. Do you believe that Santana should continue to use job order costing or switch to process costing for her workstation furniture manufacturing? Explain.
Process Costing:
Process costing is utilized primarily in manufacturing, where units are persistently mass-produced through a different process. Examples of this include chemicals, processed foods, and erasable products.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answer1) The main difference between the two is that job order costing adds up the sums distributed throughout a specific unit to calculate its total cost....
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Process Costing: Definition & Examples
from
Chapter 1 / Lesson 12
47K
Learn about process costing. Study the process costing definition, examine process costing examples, and discover why process costing systems are so important.
Related to this Question
- The computer workstation furniture manufacturing that Santana Rey started is progressing well. At this point, Santana is using a job-order costing system to account for the production costs of this product line. Santana heard about process costing and is
- The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions' job cost sheets show the following total costs accu
- The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs. Job 602 Job 603 Job 6
- The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solution's job cost sheets show the following total costs accumulated on three furniture jobs. Job 602 Job 603 Job 60
- Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture. Classify the following manufacturing cost as either variable or fixed: Factory overhead of $510. Also, classify the cost as e
- Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture. 1.) Prepare a schedule of cost of goods manufactured for Business So
- The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs. || ||job 602 ||job
- Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $413,000
- The computer workstation furniture manufacturing that Adria Lopez started in January is progressing well. As of the end of June, Success Systems' job cost sheets show the following total costs accumul
- The computer work station furniture manufacturing that Adria Lopez started in January is progressing well. As of the end of the June, Success Systems' job cost sheets show the following total cost acc
- Production of more than one unit of a custom product a. Cost accounting system b. Target cost c. Job lot d. Job e. Job order production
- WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The p
- WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The pre
- Adriana Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis
- In a job order cost system, work-in-process inventory is credited when a. manufactured goods are sold. b. manufactured goods are completed. c. raw materials are used in production. d. none of these.
- Gitano Products operates a job-order costing system and applies overhead cost to jobs on production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost f
- Garcia Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2010, Job No. 50 was the only job in the process. The costs incurred prior to January 1 on this job were as follows: dir
- WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department
- Adria Lopez, owner of Success Systems, decides to diversify her business by also manufacturing computer workstation furniture. Classify the following manufacturing cost of her company by behavior and by traceability: Wages of desk assembler. | | Cost by
- In a job order cost system, a credit to Manufacturing Overhead will be accompanied by debit to A. Cost of Goods Manufactured. B. Raw Materials Inventory. C. Finished Goods Inventory. D. Work in Process Inventory.
- Stone Creek Furniture Factory (SCFF), a custom furniture manufacturer, uses a job order costing to track the cost of each customer order. On March 1, SCFF had two jobs in process with the following costs: Work in Process Balance on 3/1 Job 33 $5,200 Job 3
- Under a job order cost system, costs are accumulated for: A. Each department in the production cycle. B. Each batch of production, known as a job or lot. C. Each individual unit produced. D. Each job supervisor.
- Manufacturing overhead costs that are assigned to production in a process cost system are debited to: a. the Finished Goods Inventory account b. Cost of Goods Sold c. the Work in Process account d. a Manufacturing Overhead account
- Manufacturing overhead costs are assigned to production in a process cost system are debited to a. the Finished Goods Inventory account. b. Cost of Goods Sold. c. the Work in Process account. d. a Manufacturing Overhead account.
- Houston Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies to manufacture overhead cost to products on the basi
- Tallahasee Company is highly automated and uses a computer to control manufacturing operations. Tallahassee uses a job order costing system and applies manufacturing overhead to products on the basis
- When manufacturing overhead costs are assigned to production in a process cost system, they are debited to: A. the Finished Goods Inventory account. B. Cost of Goods Sold. C. a Manufacturing Overhead account. D. the Work in Process account.
- Milton Manufacturing uses a process costing system. Products are processed successively by Department and Department Y and are then transferred to the finished goods warehouse. Shown below is cost i
- The sanding department of Richards Furniture Company has the following production and manufacturing cost data for March 2014, the first month of operation. Production: 9,000 units finished and transf
- If cost of goods manufactured is $306,790, beginning work in process inventory, $25,000, and cost to manufacture, $300,000, the ending work in process inventory balance is $______.
- In a process costing system, manufacturing overhead applied is usually recorded as a debit to: A) Finished goods B) Work in process C) Manufacturing overhead D) Cost of goods sold
- A system that records manufacturing costs using a perpetual inventory system a. Cost accounting system b. Target cost c. Job lot d. Job e. Job order production
- In a job order cost system, accumulating manufacturing costs include all of the following except: a. Cost of goods sold is recorded b. Raw materials are purchased c. Factory labor is incurred d. Manufacturing overhead is incurred
- Adria Lopez, owner of Success Systems, decides to diversify her business by also manufacturing computer workstation furniture. Classify the following manufacturing cost of her company be behavior and by traceability: Taxes on assembly workshop. | | Cost
- The Sanding Department of Richards Furniture Company has the following production and manufacturing cost data for March 2014, the first month of operation. Production: 8,020 units finished and transferred out; 3,400 units started that are 100% complete a
- A document in a job order costing system that is used to record the costs of producing a job is a(n): a. Job cost sheet. b. Job lot. c. Finished goods summary. d. Process cost system. e. Units-of-production sheet.
- Single plantwide factory overhead rate method and multiple production department factory overhead rate method and product cost distortion. Peach Computer Company manufactures a desktop and portable c
- Sheffield, Inc. manufactures ergonomically designed computer furniture. Sheffield uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: Job No. Item Units Accumulated cost CC723 Computer caddy 25,
- Calculate the finished-goods inventory for the 12/31/02 balance sheet. Finlon Upholstery Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 2001, consisted of one job (no. 2077), which was
- Production of products in response to customer orders a. Cost accounting system b. Target cost c. Job lot d. Job e. Job order production
- Maria Ann Corporation uses a process costing system. The Baking Department is one of the processing departments in its structural manufacturing facility. In June in the Baking Department, the cost of beginning work in process inventory was $4,830, the cos
- The Sanding Department of Ortiz Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 7,000 units finished and transferre
- Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of m
- Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. Th
- The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 7,000 units finished and transferred out; 3,000 units started that are 10% complete as to
- Bonita Industries has beginning work in process inventory of $164,000 and total manufacturing costs of $886,000. If the cost of goods manufactured is $860,000, what is the cost of the ending work in process inventory? A. $190,000. B. $138,000. C. $210,
- Following are production data for a process costing system. Beginning work in process, 30% complete 12,000 units Started 90,000 units Ending work in process, 70% complete 8,000 units Costs: Beginning
- Production activities for a customized product a. Cost accounting system b. Target cost c. Job lot d. Job e. Job order production
- The Sanding Department of Qulk Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 6,380 units finished and transferred
- The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production 7,000 units finished and transferred
- The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 6,050 units finished and transferred
- The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 6,760 units finished and transferred
- The Sanding Department of Quik Furniture Company and manufacturing cost data for March 2017, the first month of operation. has the following production: Production: 7,000 units finished and transferr
- In a job order cost system, accumulating manufacturing costs include all of the following except for: a. Cost of goods sold is recorded b. Raw materials are purchased c. Factory labor is incurred d. Manufacturing overhead is incurred
- In a job-order cost system, the application of manufacturing overhead based on a predetermined overhead rate would be recorded as a debit to a. Cost of Goods Sold. b. Work-in-Process Inventory. c. Manufacturing Overhead. d. Finished Goods Inventory. e. no
- The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 6,380 units finished and transferre
- Pharmco incurred the following costs while manufacturing its product: Materials used in production, $120,000; factory depreciation, $60,000; property taxes on the administrative offices, $12,000; labor costs of assembly-line workers, $95,000; factory supp
- Basham Company uses a process cost system. During 20X6, Basham had no beginning work in process inventory. During 20X6, Basham started and finished 500 units. Also, Basham had 200 units in process at
- The Sanding Department of Quick Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 7,000 units finished and transferred out; 3,000 units started that are 100% complete as to
- Sludge, Inc. has an ending work in process inventory of $180 and an ending finished goods inventory of $300. Cost of goods manufactured was $630, and cost of goods sold $540. Production costs incurred during the period were $620. What are the beginning in
- The Sanding Department of Jo Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 11,000 units finished and transferred
- In a process cost system, the application of factory overhead usually would be recorded as an increase in: a. finished goods inventory control. b. factory overhead control. c. cost of goods sold. d. work in process inventory control.
- Adria Lopez, owner of Success Systems, decides to diversify her business by also manufacturing computer workstation furniture. Classify the following manufacturing cost of her company by behavior and by traceability: Glue to assemble workstation component
- The Polishing Department of Estaban Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process. Production: Beginning inventory 2,000 units that are 100% complete as to materials
- Foster Manufacturing uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of $7,600 and two jobs in process: Job No. 221, $3,600, and Job No. 222, $4,000. Dur
- Adria Lopez, owner of Success Systems, decides to diversify her business by also manufacturing computer workstation furniture. Classify the following manufacturing cost of her company by behavior and by traceability: Electricity for workshop. | | Cost by
- Your product line is automated to 7.0. Your labor costs on first shift are $6.00 per unit, on second shift $9.00 per unit. Material costs are $12.00. Your product is priced at the top of the range, $3
- In a process costing system, the costs are added: A. As each process or step in the production cycle occurs. B. Once at the beginning of the production process. C. As the individual job moves through production.
- Santana Mortgage Company uses a process cost system to accumulate costs in its Application Department. When an application is completed, it is forwarded to the Loan Department for final processing. The following processing and cost data pertain to Septemb
- In job order cost accounting, the three elements of manufacturing cost are charged directly to job orders. Why is it not necessary to charge manufacturing costs in process cost accounting for job orders?
- Garcia, Inc. uses a job-order costing system for its products, which pass from the Machining Department to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated: In contrast, the Assembly Department performs a
- A system of accounting in which the costs of each process are accumulated and then assigned to the units of product that passed through the process is a: A. General cost accounting system. B. Process cost accounting system. C. Job order cost accounting
- Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at 5156,800. There was no finis
- Which of the following would be accounted for using a job order cost system? A. The production of personal computers. B. The production of automobiles. C. The refining of petroleum. D. The construction of a new campus building,
- Roberts, which began business at the start of the current year, had the following data: Planned and actual production 40,000 units Sales 37,000 units at $15 per unit Production costs Variable $4 per unit Fixed $260,000 Selling and administrative costs Va
- Superior Micro Products uses the weighted-average method in its process costing system. In January, the Delta Assembly Department completed its processing of 25,000 units and transferred them to the next department. The cost of beginning work in process i
- Kerner Manufacturing uses a process cost system to manufacture laptop computers. The following information summarizes operations relating to laptop computer model #KJK20 during the quarter ending March 31: Units Direct Materials Work in process inventory,
- Haslett Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,200 units of Product B was received. The standard cost of one u
- During the year, Job 400 was started and completed. If Job 400 includes 52 units, what is the unit product cost for this job? If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it have establi
- _____ pertains to the creation of a finished product either by hand or by machine. a. Manufacturing b. Non-manufacturing costs c. Factory overhead or manufacturing overhead d. Manufacturing costs
- Ending work in process inventory is $60,000. Beginning work in process inventory is $90,000. Total manufacturing costs are $820,00. The costs of goods manufactured is: A. $790,000 B. $970,000 C. $850,000 D. $670,000
- During 20X8, Durant Manufacturing experienced an increase in work-in-process inventory. As a result: A. cost of goods sold will be greater than cost of goods manufactured. B. cost of goods sold will be less than cost of goods manufactured. C. total manufa
- If the products of a manufacturing process are produced to customer specifications, a process cost system is more appropriate than a job order cost system. A. True B. False
- Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs:
- Zahn Industries uses process costing system. During October, the finishing department had 30,000 units in beginning work-in-process inventory and 45,000 units in ending work in process inventory. Duri
- Adria Lopez, owner of Success Systems, decides to diversify her business by also manufacturing computer workstation furniture. Classify the following manufacturing cost of her company be behavior and by traceability: Laminate coverings for desktops. | |
- In September, one of the processing departments at Farquer Corporation had beginning work in process inventory of $34,000. During the month, $342,000 of costs were added to production and the cost of units transferred out of the department was $357,000.
- Reyes Manufacturing Company uses a job order cost system. Al the begining of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200) Job 202 was started
- Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,600 units and transferred them to the next department. The cost of beginning work in proce
- Clone Computers assembles and packages personal computer systems from brandname components. Its Home Office PC System is assembled from components costing $1,400 per system and sells for $2,000. Labour costs for assembly are $100 per system. This product
- Deglman Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2012, Job No. 50 was the only job in the process. The costs incurred prior to January 1 on this job were as follows: di
- The manufacturing operation most likely to use job-order costing rather than a process costing is a. cereal manufacturing b. candy manufacturing c. crude oil refining d. office building construction
- In November, one of the processing departments at Goodsell Corporation had beginning work in process inventory of $36,000 and ended work in process inventory of $35,000. During the month, $427,000 of costs were added to production and the cost of units tr
- Marian Ann Corporation uses a process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Baking Department, the cost of beginning work in process inventory was $3,570, the cost
- True or False: If the products of a manufacturing process are produced to customer specifications, a process cost system is more appropriate than a job order cost system.
- In a process costing system, the number of WIP inventories: a. equals the number of products produced. b. equals the number of production departments. c. equals the number used in a job cost system. d. cannot equal the number of parts used in the product.
- All of the following are characteristics of a process cost system except: a. the system accumulates costs per job. b. manufacturing costs are grouped by department rather than by jobs. c. the system may use several work-in-process inventory accounts.
- Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,800 units and transferred them to the next department. The costs of beginning work in pro
- Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,800 units and transferred them to the next department. The costs of beginning work in
- Santana Mortgage Comapny uses a process costing system to accumulate cost in its Application Department. When an application is completed, it is fowarded to the Loan Department for final processing. T
Explore our homework questions and answers library
Browse
by subject