Q1: Which of the following businesses would normally use job order costing syste
ID: 2399719 • Letter: Q
Question
Q1:
Which of the following businesses would normally use job order costing systems and which would normally use process costing systems? Select either Job order or Process for each of the following businesses below:
Q2:
The Mountain Springs Water Company has two departments. Purifying and Bottling. The Bottling Department received 60,080 liters from the Purifying Department. During the period, the Bottling Department completed 57,400 liters, including 2,880 liters of work in process at the beginning of the period. The ending work in process was 5,560 liters. How many liters were started and completed during the period?
Q3:
The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $737,000. The conversion cost for the period in the Bottling Department is $330,000. The total equivalent units for direct materials and conversion are 33,500 and 6,600, respectively. Determine the direct materials and conversion cost per equivalent unit.
$ per equivalent unit of conversion costs
Q4:
A firm operated at 80% of capacity for the past year, during which fixed costs were $205,000, variable costs were 68% of sales, and sales were $1,055,000. Operating profit was
$132,600
$717,400
$106,080
$337,600
Tax consultant Paint manufacturer Nail manufacturer Videographer Lotions and cosmetics manufacturer Web designQ2:
The Mountain Springs Water Company has two departments. Purifying and Bottling. The Bottling Department received 60,080 liters from the Purifying Department. During the period, the Bottling Department completed 57,400 liters, including 2,880 liters of work in process at the beginning of the period. The ending work in process was 5,560 liters. How many liters were started and completed during the period?
Explanation / Answer
Q1. Tax consultant Job costing Paint Manufacturer process costing Nail Manufacturer process costing Videographer Job costing Lotions and Cosmetics process costing Manufacturer Web design Job costing Q2. Total completed units: 57400 ltrs Less: Completed from Beg. WIP 2880 ltrs Units started and completed 54520 ltrs Q3. Material cost per unit: Total material cost 737000 Divide: Material e quiv. Unit 33500 Material cost per unit: 22 Conversion cost per unit: Total conversion cost 330000 Divide: Conversion equiv. units 6600 Conversion cost per unit: 50 Q4. Sales 1055000 Less: Variable cost @68% 717400 Contribution 337600 Less:; Fixed cost 205000 Operating income 132600 Answer is $132600
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