Asked by Samantha Frederick on Apr 24, 2024
Verified
Costing system used by a company producing custom window treatments
A) Direct labor and factory overhead
B) Direct labor and direct materials
C) Transferred-in costs
D) Equivalent units
E) Process costing
F) Job order costing
G) First-in, first-out method
H) Cost of production report
Job Order Costing
An accounting method used to track the costs associated with producing a specific batch of products or performing a specific service.
Costing System
A method used by businesses to track, record, and analyze costs associated with their products or services to ensure profitability.
- Choose the appropriate costing system for assorted production environments.
- Recognize prime costs and the significance of costing systems in cost management.
Verified Answer
HM
Hector Mendoza5 days ago
Final Answer :
F
Explanation :
Job order costing is used for custom-made products, such as custom window treatments.
Answer: B
Direct labor and direct materials are the two main components of the cost of goods sold for manufacturing companies.
Answer: F
This phrase also pertains to job order costing.
Answer: C
Transferred-in costs refer to the costs of products or services that were started in one department but finished in another department within the same company, and are a part of process costing.
Answer: E
Process costing is used when there is a continuous flow of identical units produced, such as in the manufacturing of mass-produced goods like soda or laundry detergent.
Answer: G
The first-in, first-out (FIFO) method means that the oldest inventory is sold first.
Answer: D
Equivalent units refers to the units of output that are partially completed but have not yet been finished, which is important in determining the cost of production.
Answer: H
A cost of production report shows the cost of producing goods, including the amount of direct labor, direct materials, and overhead required to complete production.
Answer: B
Direct labor and direct materials are the two main components of the cost of goods sold for manufacturing companies.
Answer: F
This phrase also pertains to job order costing.
Answer: C
Transferred-in costs refer to the costs of products or services that were started in one department but finished in another department within the same company, and are a part of process costing.
Answer: E
Process costing is used when there is a continuous flow of identical units produced, such as in the manufacturing of mass-produced goods like soda or laundry detergent.
Answer: G
The first-in, first-out (FIFO) method means that the oldest inventory is sold first.
Answer: D
Equivalent units refers to the units of output that are partially completed but have not yet been finished, which is important in determining the cost of production.
Answer: H
A cost of production report shows the cost of producing goods, including the amount of direct labor, direct materials, and overhead required to complete production.
Learning Objectives
- Choose the appropriate costing system for assorted production environments.
- Recognize prime costs and the significance of costing systems in cost management.