Exam 6: Fundamentals of Product and Service Costing

For which of the following businesses would the job order cost system be appropriate?

The only purpose of cost information is to determine the individual product cost on a per unit basis in order to value inventory.

MegaRock produces quick setting concrete mix.Production of 200,000 tons was started in April,190,000 tons were completed.Material costs were $3,152,000 for the month while conversion costs were $591,000.There was no beginning work-in-process;the ending work-in-process was 70% complete.What is the cost of the product that remains in work-in-process?

The cost per unit of the allocation base used to charge overhead to products is the:

The basic cost flow model is:

Distinguish between job order costing,process costing,and operation costing.Give an example of a company that would use each.

Cost pools are:

Gentry Cabinetry produces two models of home shelving,the Basic and the Mega.Data on operations and costs for November are: Required: Compute the unit cost for each model,assuming Gentry Cabinetry uses: (a)Direct labor hours to allocate overhead costs.(b)Direct labor costs to allocate overhead costs.(c)Machine hours to allocate overhead costs.