Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.
a. Companies that produce small quantities of many different products.
Job order costing system is used by the company if they produce small quantities of many different products.
Step 1: Job order costing system
Job order costing system of costing is used by the companies that manufacture goods in small quantities or unique batches of product.
As per the definition of job order costing system, the companies that produce small quantities of many different products are most likely to use the job order costing system for ascertaining the costing of the products.
Comparing actual to allocated overhead
Columbus Enterprises reports the following information at December 31, 2018:
1. What is the actual manufacturing overhead of Columbus Enterprises?
June production generated the following activity in Bentley Chassis Company’s Work-in-Process Inventory account:
June 1 balance
Direct materials used
Direct labor assigned to jobs
Manufacturing overhead allocated to jobs
Additionally, Bentley Chassis has completed Jobs 142 and 143, with total costs of
$37,000 and $48,000, respectively.
2. Open a T-account for Work-in-Process Inventory. Post the journal entry made in Requirement 1. Compute the ending balance in the Work-in-Process Inventory
account on June 30.
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