JOB ORDER COSTING

Which company is least likely to use a process costing system?

• paper manufacturer

• soft drink bottler

• accounting firm

• petroleum processor

Which characteristic is the same in both job order costing systems and process costing systems?

• types of product costs

• flow of cost through the accounts

• number of work-in-process accounts

• method of record keeping

Conversion costs are

• direct material plus labour cost

• direct labour plus manufacturing overhead

• direct materials plus manufacturing overhead

• indirect material plus indirect labour

Questions 4-7 rely on the following data.
Burton Company uses the weighted-average method in its process costing system. The Packaging Department started the month with 200 units in process that were 70% complete, received 1,500 units from the Finishing Department, and had 150 units in process at the end of the period. All materials are added at the beginning of the process and conversion costs are incurred uniformly. The units in process at the end of the month are 20% complete with respect to conversion costs. The department incurred the following costs:



 

• 150 units

• 1500 units

• 1350 units

• 1550 units

For conversion cost, the equivalent units of production are

• 1700

• 1580

• 1500

• 1550

The cost per equivalent unit for direct materials is

• RM2.00

• RM4.00

• RM8.00

• RM14.00

Of the RM3,400 total costs for direct materials, what amount will be transferred out?

• RM3400

• RM300

• RM1200

• RM3100

The manager of Gilbert Company used the production cost report to compare budgeted costs to actual costs and then based bonuses on the results. This is an example of using the reports to

• prepare financial statements.

• control costs

• evaluate performance.

• identify profitable products