QUESTION 1

For the list of product manufacturers below, indicate whether a job-cost system (J) or a process cost system (P) would be most appropriate. Please use capital P and J for your answers.

J or P	oil refinery
J or P	Paint manufacturer
J or P	Accounting firm
J or P	Jelly bean producer
J or P	Cereal producer
J or P	Custom kitchen cabinet builder

Question 2

Branson Company applies manufacturing overhead based ondirect labor hours. Information concerning manufacturing overhead and labor for August foll

	Estimated	Actual
Overhead cost	$160,000	$161,000
Direct Labor hours	8,000	8,200
Direct Labor Cost	$120,000	$115,800

How much is the predetermined overhead rate?

A) $1.33

B) $20.00

C) $1.03

D) $19.63

Question 3

Organic Sugar Company at Ohio has six processing departments for refining sugar: Affination, Carbonatation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout each process and materials are added at the beginning of each process. Data from the month of August for the Recovery Department are as follows:

	Metric Tons
Beginning Work-In-process inventory	3,000
Started in production	18,500
Ending work-in-process inventory	6,500

How many units were completed and transferred out?