Exercise of Chapter 18 Exercises I. An umbrella manufacturer has three departments for production. The handle is produced in the first department, with the second department attaching the fabric to the handle, and the third department used for packing and distribution. If all umbrellas produced are similar but can vary by size or color, should the business use a job order or process cost system? 2. A manager for a new business is trying to decide which type of cost system to account for the costs incurred during production. The business will manufacture high quality rugs according to customer specifications. Once the customer specifications are determined for each order, the company will acquire the inputs needed. Would a job order or process cost system be best for the manager? Fodm 3. Lilac Skin Care Company consists of two departments, Blending and Filling. The Filling Department received 45,000 ounces from the Blending Department. During the period, the Filling Department completed 42,800 ounces, including 4,000 ounces of work in process at the beginning of the period. The ending work in process inventory was 6,200 ounces. How many ounces were started and completed during the period? Keystone Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 8,500 tons from the Casting Department. During the period, the Rolling Department completed 7,900 tons, including 400 tons of work in process at the beginning of the period. The ending work in process inventory was 1,000 tons. How many tons were started and completed during the period? 4