Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration

Q 15E_g

Horngren'S Financial And Managerial Accounting
Found in: Page 941

Short Answer

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

g. A textbook publisher that produces copies of a particular book in batches.


Job order costing system is used by the textbook publisher that produces the copies of a particular book in batches.

See the step by step solution

Step by Step Solution

Step-by-Step Solution:

Step 1: Job order costing system

Job order costing system is a system that takes place when the customers order small, unique batches of the products.

Step 2: Classification of costing system according to the characteristics

The costing system used by the textbook publishers that produce copies of a particular book in batches is job order costing system, because the books are published in batches.

Most popular questions for Business-studies Textbooks

Superior Construction, Inc. is a home builder in Arizona. Superior uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account titled Construction Overhead. The company applies overhead based on estimated direct labor costs. For the year, it estimated construction overhead of $1,150,000 and total direct labor costs of $5,750,000. The following events occurred during August:

a. Purchased materials on account, $400,000.

b. Requisitioned direct materials and used direct labor in construction. Recorded the materials requisitioned.

Direct material

Direct Labor

House 402



House 403



House 404



House 405



c. The company incurred total wages of $300,000. Use the data from Item b to assign the wages. Wages are not yet paid.

d. Depreciation of construction equipment, $6,700.

e. Other overhead costs incurred: Equipment rentals paid in cash, $30,000; Worker liability insurance expired, $7,000.

f. Allocated overhead to jobs.

g. Houses completed: 402, 404.

h. House sold on account: 404 for $250,000.


1. Calculate Superior’s predetermined overhead allocation rate for the year.

2. Prepare journal entries to record the events in the general journal.

3. Open T-accounts for Work-in-Process Inventory and Finished Goods Inventory.

Post the appropriate entries to these accounts, identifying each entry by letter.

Determine the ending account balances, assuming that the beginning balances

were zero.

4. Add the costs of the unfinished houses, and show that this total amount equals the ending balance in the Work-in-Process Inventory account.

5. Add the costs of the completed house that has not yet been sold, and show that this equals the ending balance in Finished Goods Inventory.

6. Compute gross profit on the house that was sold. What costs must gross profit

cover for Superior Construction?


Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.