Question

Mom’s Bakery makes a variety of baked goods for distribution to grocery stores in the area. The company uses a standard manufacturing process for all items except special-order birthday cakes. It currently uses a process costing system. The owner of the company has the following questions:
1. Did the cost of making special-order birthday cakes exceed the cost budgeted for this month?
2. How much does it cost to make one cheesecake?
3. What is the value of the cupcake inventory at the end of May?
4. What were the costs of the cookies sold during May?
5. At what price should Mom’s Bakery sell its famous sweet rolls to the grocery store chains?
6. Were the planned production costs of $3,000 for making pies in May exceeded? Which of these questions can be answered using information from a process costing system? Which can be best answered using information from a job order costing system?
Explain your answers.



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  • CreatedMarch 26, 2014
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