Question

JUAL... He y Title Subtitle Subtle Em... Emphasis Intense E. Strong Quote Intense ... Subtle Ref. 1 9 Repla Select Editing Styles 11. All of the following are examples of firms who would use job costing except: a. An automobile repair business. b. A custom sailboat builder. c. An interior designing firm d. A sport drink manufacturing company. e. None of the answer choices is correct. 12. All of the following are reasons that managers track revenues and costs using a job costing system except a Managers use the information to record product costs as period costs. 6. Managers want to know if individual jobs are profitable. c. Managers compare actual costs with estimated costs throughout the project to identify unexpected changes as early as possible. d. Managers assess the accuracy of original cost estimates e. None of the answer choices is correct 13. All of the following are examples of firms who would use process costing except: a. A chewing gum manufacturer b. An ice cream manufacturer c. An oil refinery d A plumbing contractor e. None of the answer choices is correct. 14. Adams Company placed $2,000 of direct materials into production. Which one of the following journal entries should Jones record for this transaction? a. Raw Materials Inventory 2,000 Accounts Payable 2.000 b. Work in Process Inventory 2.000 Manufacturing Overhead 2.000 c. Manufacturing Overhead 2,000 Raw Materials Inventory 2,000 d. Work in Process Inventory 2.000 Raw Materials Inventory e. None of the answer choices is correct. 2,000 45,000 15. Burton Company purchased $45,000 of raw materials on account. Which one of the following journal entries should Burton record for this transaction? a. Work in Process Inventory 45,000 Raw Materials Inventory 4 5,000 b. Raw Materials Inventory 45,000 Accounts Payable c. Work in Process Inventory 45,000 Accounts Payable 45,000 d. Accounts Payable 45,000 Raw Materials Inventory 45,000 e. None of the answer choices is correct. EFocus ES | A lô - A ( 09 121/2

Answer 1

Answer 11:

Correct answer is:

d. Sport drink manufacturing company.

Explanation:

Job costing is used where products are customized or unique. Sport drink manufacturing company will be using process costing (not job costing).

Custom sailboat builder, automobile repair business and interior design business would be using Job costing.

Hence option d is correct and other options a, b and c are incorrect.

Answer 12:

Correct answer is:

a. Managers uses the information to record product costs as period costs.

Explanation:

Product costs and period costs are defined and usage of job costing cannot does not allow to record product costs as period costs.

As such option a is correct.

Options b, c and d are reasons that managers use job costing.

Hence option a is correct and other options b, c and d are incorrect.

Answer 13:

Correct answer is:

d. A plumbing contractor.

Explanation:

Jobs of plumbing contractor are not standardized and job costing is most suitable for them.

Process costing most suitable for chewing gum manufacturer, ice cream manufacturer and oil refineries.

Hence option d is correct and other options a, b and c are incorrect.

Answer 14:

Correct answer is:

d. Work in process inventory $2,000

Raw material inventory $2,000

Explanation:

When raw material is issued to production, work in process is debited and raw material inventory is credited.

Entry a is to record raw material purchase on account. Entry b is to record application of overhead. Entry c is to record issue of indirect material.

Hence option d is correct and other options a, b and c are incorrect.

Answer 15:

Correct answer is:

b. Raw material inventory $45,000

Accounts Payable    $45,000

Explanation:

When raw material is purchased on account, raw material inventory is debited and accounts payable is credited.

Entry as per option a is used when raw material is issued to production. Entries as per options c and d are incorrect.

Hence option b is correct and other options a, c and d are incorrect.