1. Job-order costing would be more appropriate in which of the following situati

Question

1. Job-order costing would be more appropriate in which of the following situations?

An Elmer's glue factory

A textbook publisher such as McGraw-Hill

A shop that customizes vans.

An Exxon oil refinery.

2. Process costing would be more appropriate in which of the following situations?

An auto repair shop

A Scott paper mill

A custom home builder

An advertising agency

3. Expense A is a fixed cost; expense B is a variable cost. During the current year the activity level has increased, but is still within the relevant range. In terms of cost per unit of activity, we would expect that:

Expense A has remained unchanged

Expense B has decreased

Expense A has decreased

Expense B has increased

4. Edmondson Inc. produces and sells a single product. The selling price of the product is $200.00 per unit and its variable cost is $50.00 per unit. The fixed expense is $205,500 per month. The break-even in monthly dollar sales is closest to:

$205,500

$274,000

$822,000

$433,833

5. Edmondson Inc. produces and sells a single product. The selling price of the product is $200.00 per unit and its variable cost is $50.00 per unit. The fixed expense is $205,500 per month. The break-even in monthly unit sales is closest to:

4,110

2,169

1,028

1,370

Explanation / Answer

As per Chegg Guidelines we answer one question per post. I have answered more than 1 question. Kindly post remaining questions in separate post to get the best answers Q1 A shop that customizes vans.' Since shop believes in customisation job order costing is preferred Q2 A Scott paper mill Since in the mill there would be different processing departments process costing would be more appropriate. Q3 Expense A has decreased   Since Fixed cost remains same at all levels and if production has increased fixed cost per unit will fall. Q4 $274,000 Statement showing computations Particulars Amount SP per unit                      200.00 VC per unit                        50.00 Contribution per unit                      150.00 PV Ratio = 150/200                          0.75 Fixed Expenses             205,500.00 Break even sales in $ = 205,500/.75             274,000.00 Q5    1,370 Statement showing computations Particulars Amount SP per unit                      200.00 VC per unit                        50.00 Contribution per unit                      150.00 Fixed Expenses             205,500.00 Break even sales in units = 205,500/150                  1,370.00

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