process costing and some use joborder costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below. i. Custom boat builder ii. Frozen cranberry juice processor iii. Concrete block manufacturer iv. Winery that produces a number of varietal wines v. Aluminum refiner that makes aluminum ingots from bauxite ore For each company, indicate whether the company is most likely to use job-order costing or process costing.
Student Answer: i. Custom boat builder-------------------------------------------- Job-order Costing ii.
Frozen cranberry juice processor---------------------------- Process Costing iii. Concrete block manufacturer-------------------------------- Process Costing iv. Winery that produces a number of varietal wines------- Job-order Costing v. Aluminum refiner that makes aluminum ingots from bauxite ore--Process Costing Source: Book pg-83, 141 Instructor Explanation: i. Custom boat builder ii. Frozen cranberry juice processor iii. Concrete block manufacturer iv. Winery that produces a number of varietal wines v. Aluminum refiner that makes aluminum ingots from bauxite ore
Points Received:
Job-Order Costing Process Costing Process Costing Job-Order Costing Process Costing