Which company would you recommend use a process costing system?

Question 6 options:

	A custom framing business
	A luxury yacht manufacturer
	An oil manufacturer
	An event planning company

Question 7 (2 points)

Direct materials costs are transferred out of Raw Materials Inventory and assigned to ________.

Question 7 options:

	Finished Goods Inventory
	Manufacturing Overhead
	Work-in-Process Inventory
	Cost of Goods Sold

Question 8 (2 points)

Which of the following will be included in manufacturing overhead costs?

Question 8 options:

	Indirect Labor
	Direct Materials
	Salaries of salespeople
	Direct Labor

Question 9 (2 points)

JoJo, Inc. has received a bid for 14,000 units. The costing estimates show that the average cost per unit for this bid will be $600. The company uses cost-based pricing and adds 25% markup to total costs. What total price will JoJo ask for the entire order?

Question 9 options:

	$2,100,000
	$6,300,000
	$8,400,000
	$10,500,000

Question 10 (2 points)

Job 421 had $5,000 in actual direct labor costs for the Assembly Department and $4,500 in actual direct labor costs in the Packaging Department. If the predetermined overhead allocation rate is 80% of direct labor costs, how much overhead will be allocated to job 421?

Question 10 options:

	$4,000
	$950
	$8,550
	$7,600