Job Order Costing and Process Costing Applications For each of the following situations, indicate whether job order
Question:
Job Order Costing and Process Costing Applications For each of the following situations, indicate whether job order or process costing is more appropriate and why.
a. Building contractor for residential dwellings Manufacturer of nylon yarn that sells to fabric-making textile companies Evening gown manufacturer that makes gowns in several different fabrics, colors, styles, and sizes Hosiery mill that manufactures a one-size-fits-all product Vehicle battery manufacturer that has just received an order for 400,000 identical batteries to be delivered as completed over the next 12 months 18=Process Costing Clarke Manufacturing Company makes a single product that is produced on a continuous basis in one department. All materials are added at the beginning of production. The total cost per equivalent unit in process in March was \($6.00\), consisting of \($4.80\) for materials and \($1.40\) for conversion. During the month, 9,000 units of product were transferred to finished goods inventory; on March 31, 3,500 units were in process, 10 percent converted. The company uses weighted average costing.
Required
a. Determine the cost of goods transferred to finished goods inventory.
b. Determine the cost of the ending work-in-process inventory.
c. What was the total cost of the beginning work-in-process inventory plus the current manufacturing costs?
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