Tco F Essay

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1. (TCO F) For which situation(s) below would an organization be more likely to use a job-order costing system of accumulating product costs rather than a process costing system? (Points : 5) a steel factory that processes iron ore into steel bars a factory that processes sugar and other ingredients into black licorice a costume maker that makes specialty costumes for figure skaters all of these 2. (TCO F) Which of the following companies would be most likely to use a job-order costing system rather than a process costing system? (Points : 5) fast food restaurant shipbuilding crude oil refining candy making 3. (TCO F) Unizat Corporation uses the weighted-average method in its process costing system. The following information pertains to one of the company's processing departments for a recent month: All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to: (Points : 5) $0.86 $0.90 $1.10 $1.18 Page: 1 2 Time Remaining: 1. (TCO F) Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below: i. Specialty coffee roaster (roasts small batches of specialty coffee beans) Job-order ii. Custom aircraft builder Job-Order iii. Brick manufacturer Process Costing iv. Microbrewery that produces a number of different beers Job-Order v. Steel company making chain link fences from iron ore Process Costing Required: For each company, indicate whether the company is most likely to use job-order costing or process costing. (Points : 15) i. Specialty coffee roaster (roasts small batches of specialty coffee beans) Job-order ii. Custom aircraft builder Job-Order iii. Brick manufacturer Process Costing iv. Microbrewery that produces a number of different

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