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Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.

h. A company that bottles milk into one-gallon containers.

Short Answer

Expert verified

Answer:

Process costing system is used by the companies that bottles milk into large number of containers.

Step by step solution

01

Step-by-Step Solution:

Step 1: Process costing system

Process costing system is applicable to the companies which manufacture the product in large quantity and the production process of which involves a series of procedures.

02

Classification of costing system according to the characteristics

The company that bottles the milk into one gallon containers uses the process costing system to value the costing of the process performed by the company. It is so because the company is engaged in the production of similar product in large quantity.

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Most popular questions from this chapter

Lincoln Company completed jobs that cost \(38,000 to produce. In the same period,the company sold jobs for \)88,000 that cost $42,000 to produce. Prepare the journalentries for the completion and sales of the jobs. All sales are on account.

Distinguishing between job order costing and process costing

Would the following companies most likely use job order costing or process costing?

c. A manufacturer of luxury yachts

Question: Journalize the following transactions for Margeโ€™s Sofas. Explanations are not required.

b. Incurred manufacturing wages of $15,000, 75% of which was direct labor and

25% of which was indirect labor.

June production generated the following activity in Bentley Chassis Companyโ€™s Work-in-Process Inventory account:

June 1 balance

\(36,000

Direct materials used

32,000

Direct labor assigned to jobs

40,000

Manufacturing overhead allocated to jobs

28,000

Additionally, Bentley Chassis has completed Jobs 142 and 143, with total costs of

\)37,000 and \(48,000, respectively.

Requirements

3. Prepare the journal entry to record the sale on account of Job 143 for \)63,000.

Also, prepare the journal entry to record Cost of Goods Sold for Job 143.

Selected cost data for Classic Print Co. are as follows:

Estimated manufacturing overhead cost for the year

$125,000

Estimated direct labor cost for the year

78,125

Actual manufacturing overhead cost for the year

116,000

Actual direct labor cost for the year

67,000

Requirements

4. Prepare the journal entry to adjust for the under allocated or overallocated manufacturing overhead.

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