Managerial Accounting

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1) Before answering this question lets review the job and process costing sytems: Job order cost system:
• Jobs are assigned to each job or batch
• A job may be for a specific order of inventory
Process cost system :
• This cost system is generally used when a large volume of similar products are manufactured

Answers:

a. A custom yacht builder – job order costing
b. A golf course designer – job order costing
c. A potato chip manufacturer – process costing
d. A business consultant- job order costing
e. A plywood manufacturer – process costing
f. A Soft drink bottler- process costing
g. A film studio – job order costing
h. A firm that supervisors bridge construction projects- job order costing i. A manufacturer of fine custom jewelry- job order costing j. A made to order garment factory – job order costing
k. A factory making one personal computer model – process costing l. A fertilizer factory – process costing

2)
2.1.
a.

|General Journal | |Accounts |Debit |Credit | |Raw Materials |210,000 |  | |     Accounts Payable |  |210,000 |

b.

| General Journal | |Accounts |Debit |Credit | |Work in Process |152,000 |  | |Manufacturing Overhead | 38,000 |  | |     Raw Materials |  |190,000 |

c.

|General Journal | |Accounts |Debit |Credit | |Work in Process |49,000 |  | |Manufacturing Overhead |21,000 |  | |     Accounts Payable |  |70,000 |

d.

|General Journal | |Accounts |Debit |Credit | |Manufacturing Overhead |105,000 |  | |     Accumulated Depreciation |  |105,000 |

e.

|General Journal | |Accounts |Debit |Credit | |Manufacturing Overhead |130,000 |  | |     Accounts Payable |  |130,000 |

f.

|General Journal | |Accounts...
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