This document provides sample questions and solutions for an accounting exam on job order and process costing systems. It includes multiple choice and problem-solving questions that address key concepts like: - When a company would be more likely to use job order costing vs process costing - How to calculate equivalent units, cost per equivalent unit, and ending inventory costs for a process costing system - How to record raw material purchases and transfers between inventory accounts The document provides detailed explanations and calculations for cost accounting problems involving job order and process costing.

1. DEVRY ACCT 505 Week 2 Quiz Job Order and
Process Costing Systems
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1.Question :(TCO F) For which situation(s) below
would an organization be more likely to use a job-
order costing system of accumulating product
costs
rather than a process costing system?
2.Question :(TCO F) Process costing would be
appropriate for each of the following except:
3.Question :(TCO F) Lucas Company uses the
weighted-average method in its process costing
system. The company adds materials at the
beginning
of the process in the Forming Department, which is
the first of two stages in its production process.
Information concerning operations in the Forming
Department in October follows:
Units
Material Cost

2. Work in process on October 1
6,000
$3,000
Units started in October
50,000
$25,560
Units completed and transferred to next
Department during October
44,000
What was the materials cost of work in process at
on October 31?
4.Question :(TCO F) In a job-order costing system,
the use of direct materials that have been
previously purchased is recorded as a debit to:
5.Question :(TCO F) During December at Ingrim
Corporation, $74,000 of raw materials were
requisitioned from the storeroom for use in
production.
These raw materials included both direct and
indirect materials. The indirect materials totaled
$6,000. The journal entry to record the requisition
from the storeroom would include a:
6.Question :(TCO F) Valles Corporation had
$22,000 of raw materials on hand on February 1.
During the month, the company purchased an
additional $75,000 of raw materials. The journal

3. entry to record the purchase of raw materials
would include a:
1.Question :(TCO F) Whether a company uses
process costing or job-order costing depends on its
industry. A number of companies in different
industries are listed below:
i. Brick manufacturer
ii. Contract printer that produces posters, books,
and pamphlets to order
iii. Natural gas production company
iv. Dairy farm
v. Coal mining company
vi. Specialty coffee roaster (roasts small batches of
specialty coffee beans)
For each company, indicate whether the company
is most likely to use job-order costing or process
costing.
i. Brick manufacturer Process Costing ii. Contract
printer that produces posters, books, and
pamphlets to order Job Order Costing iii. Natural
gas production company Process Costing iv. Dairy
farm Process Costing v. Coal mining company
Process Costing vi. Specialty coffee roaster (roasts
small batches of specialty coffee beans) Job Order
Costing
2.Question :(TCO F) Job 484 was recently

4. completed. The following data have been recorded
on its job cost sheet:
Direct materials
$57,240
Direct labor hours
1,692 DLHs
Direct labor wage rate
$12 per DLHS
Number of units completed
3,600 units
The company applies manufacturing overhead on
the basis of direct labor-hours. The predetermined
overhead rate is $24 per direct labor-hour.
Compute the unit product cost that would appear
on the job cost sheet for this job.
3.Question :(TCO F) Miller Company manufactures
a product for which materials are added at the
beginning of the manufacturing process. A review
of the company's inventory and cost records for
the most recently completed year revealed the
following information:
Units
Materials
Conversion
Work in process. Jan. 1 (80% complete with
respect to conversion costs)

5. 100,000
$100,000
$157,500
Units started into production
500,000
Costs added during the year:
Materials
$650,000
Conversion
$997,500
Units completed during the year
450,000
The company uses the weighted-average cost
method in its process costing system. The ending
inventory is 50% complete with respect to
conversion costs.
Required:
i. Compute the equivalent units of production and
the cost per equivalent units for materials and for
conversion costs.
ii. Determine the cost transferred to finished
goods.

6. iii. Determine the amount of cost that should be
assigned to the ending work in process inventory.
4.
Question :
(TCO F) Weisinger Corporation has provided the
following data for the month of January:
Inventories
Beginning
Ending
Raw materials
$28,000
$29,000
Work In process
$16,000

7. iii. Determine the amount of cost that should be
assigned to the ending work in process inventory.
4.
Question :
(TCO F) Weisinger Corporation has provided the
following data for the month of January:
Inventories
Beginning
Ending
Raw materials
$28,000
$29,000
Work In process
$16,000