1. (TCO F) Whether a company uses process costing or job-order costing depends on its industry. A number of companies in different industries are listed below:

i. Brick manufacturer

ii. Contract printer that produces posters, books, and pamphlets to order

iii. Natural gas production company

iv. Dairy farm

v. Coal mining company

For each company, indicate whether the company is most likely to use job-order costing or process costing.

(Points : 15)

2. (TCO F) Job 484 was recently completed. The following data have been recorded on its job cost sheet:

Direct materials $57,240

Direct labor hours 1,692 DLHs

Direct labor wage rate $12 per DLHS

Number of units completed 3,600 units

3. (TCO F) Miller Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company’s inventory and cost records for the most recently completed year revealed the following information:

Units Materials Conversion

Work in process. Jan. 1 (80% complete with respect to conversion costs) 100,000 $100,000 $157,500

Units started into production 500,000

Costs added during the year:

Materials $650,000

Conversion $997,500

Units completed during the year 450,000

The company uses the weighted-average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs.


i. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs.

ii. Determine the cost transferred to finished goods.

iii. Determine the amount of cost that should be assigned to the ending work in process inventory. (Points : 15)

4. (TCO F) Weisinger Corporation has provided the following data for the month of January:

Inventories Beginning Ending

Raw materials $28,000 $29,000

Work In process $16,000 $14,000

Finished goods $42,000 $54,000

Additional Information

Raw material purchases $56,000

Direct labor costs $87,000

Manufacturing overhead cost incurred $51,000

Indirect materials included in manufacturing overhead costs incurred $3,000

Manufacturing overhead cost applied to work in process $55,000

Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form. (Points : 15)