Acct 505 Week2 Quiz

ACCT 505 WEEK2 QUIZ 1. (TCO B) Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. Several companies in different industries are listed below. i. Specialty coffee roaster (roasts small batches of specialty coffee beans) ii. Custom aircraft builder iii. Brick manufacturer iv. Microbrewery that produces a number of specialty beers v. Steel company making chain link fences from iron ore vi. Breakfast cereal manufacturer For each company, indicate whether the company is most likely to use job-order costing or process costing. (Points : 15) i. Process costing ii. Job order costing iii. Process costing iv. Process costing v. Process costing vi. Process costing 2. (TCO B) Job 728 was recently completed. The following data have been recorded on its job cost sheet. Direct materials $89,925 Direct labor hours 1,220 labor hours Direct labor wage rate $15 per labor hour Machine hours 1,550 machine hours Number of units completed 4,500 units The company applies manufacturing overhead on the basis of machine hours. The predetermined overhead rate is $18 per machine hour. Compute the unit product cost that would appear on the job cost sheet for this job. (Points : 15) Direct materials $89,925 Direct labor hours $15 per DLH X 1,220 DLHs $18,300 Manufacturing overhead $18 per DLH X 1,220 DLHs $ 21,960 Total cost $ 130,185 Unit product cost (Total cost/Number of units completed) $ 28.93