Question

QUICK STUDY a connect For each of the following products and services, indicate whether it is more likely produced in a process operation Por in a job order operation ) 1. Tennis courts - 3. Audit of financial statements 5. Vanilla ice cream 2. Organic juice 4. Luxury yachts _6. Tennis halls OS 20-1 Process vs. job order operations C1 QS 20-2 Process vs job order costing Label each statement below as either true (T) or false (F). 1. The cost per equivalent unit is computed as the total costs of a process divided by the number of equivalent units passing through that process. 2. Service companies are not able to use process costing. 3. Costs per job are computed in both job order and process costing systems. 4. Job order and process operations both combine materials, labor, and overhead in producing products or services. For each of the following products and services, indicate whether it is more likely produced in a process operation (P) or a job order operation (J). 4. Wedding reception 7. Tattoos 1. Beach toys 5. Custom suits 8. Guitar picks 2. Concrete swimming pool _ 6. Juice 9. Solar panels 3. iPhones OS 20-3 Process vs. job Order operations C1 Prepare a physical flow reconciliation with the information below. QS 20-4 Physical flow reconciliation Percent of Conversion Blending Process .. Units of Product 150,000 310,000 340,000 120,000 Beginning work in process. Goods started Goods completed.... Ending work in process... 100 100 cierto QS 20-4. Compute the total equivalent units of production for conversion using the weighted- QS 20.5 Weighted average: Computing equivalent units of production C2 average method to QS 20-4. Compute the total equivalent units of production for conversion using the FIFO method. QS 20-64 FIFO: Computing equivalent units C4

Answer 1

1)Job order operation: Assigning cost to its product or services

Process operation: Process manufacturing or process production, is the mass production method of producing products in a continuous flow.

1. Tennis courts – Process operation
2. Organic Juice _ Process operation
3. Audit of Financial Statement _ Process operation
4. Luxury yachts – Process operation
5. Vanilla ice cream – Job order
6. Tennis balls – Job order

2) True or False:

1. True. An equivalent unit of production is an expression of the amount of work done by a manufacturer on units of output that are partially completed at the end of an accounting period. Basically the fully completed units and the partially completed units are expressed in terms of fully completed units.
2. False: Process costing is used when there is mass production of similar products, services or both.
3. False:

Summarize the job order cost system, the cost of each job includes direct materials, direct labor, and manufacturing overhead.

In case of Process costing is calculated Total expenses incurred in process divide by Total Units produced.

4. True

Job order and process operation both combines material, labour and overhead in producing products or services

4) Physical flow of reconciliation
Particulars	Calculation	Equivalent units
Equivalent units - beginning	(150,000*15%)	22,500
Equivalent units - started and completed	(340,000-150,000)	190,000
Equivalent units - end	(1,20,000*25%)	30,000
Total equivalent units		242,500