1.

(TCO F) Some companies use

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

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