1. Would an advertising agency use job or process costing? What about a cell phone manufacturer?
a. Advertising agency—process costing; Cell phone manufacturer—process costing
b. Advertising agency—job order costing; Cell phone manufacturer—job order costing
c. Advertising agency—process costing; Cell phone manufacturer—job order costing
d. Advertising agency—job order costing; Cell phone manufacturer—process costing
2. When a manufacturing company uses direct materials, it assigns the cost by debiting
a. Direct materials.
b. Work in process inventory.
c. Manufacturing overhead.
d. Materials inventory.
3. When a manufacturing company uses indirect materials, it assigns the cost by debiting
a. Work in process inventory.
b. Indirect materials.
c. Materials inventory.
d. Manufacturing overhead.