Bruce Company experienced an event that affected its financial statements as indicated below: What type of product costing system is being used by this company?
$$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | c | }
\hline { \text { Assets } } &&& = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \
\hline \begin{array} { c }
\text { WIP } \
\text { Mixing }
\end{array} & + & \begin{array} { c }
\text { WIP } \
\text { Packing }
\end{array} & & & & & & & & & \
\hline ( 10,500 ) & + & 10,500 & = & \text { NA } & + & \text { NA } & \text { NA } & - & \text { NA } & = & \text { NA } \
\hline
\end{array}$$
A)Job-order cost system
B)Hybrid cost system
C)Process cost system
D)None of these.

Question

Bruce Company experienced an event that affected its financial statements as indicated below: What type of product costing system is being used by this company?
$$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | c | } 
\hline { \text { Assets } } &&& = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \
\hline \begin{array} { c } 
\text { WIP } \
\text { Mixing }
\end{array} & + & \begin{array} { c } 
\text { WIP } \
\text { Packing }
\end{array} & & & & & & & & & \
\hline ( 10,500 ) & + & 10,500 & = & \text { NA } & + & \text { NA } & \text { NA } & - & \text { NA } & = & \text { NA } \
\hline
\end{array}$$
A)Job-order cost system
B)Hybrid cost system
C)Process cost system
D)None of these.

Quizplus · Accepted Answer

The movement of costs between different work-in-process (WIP) accounts, such as "Mixing" and "Packing," indicates a process cost system, which is used for continuous production processes.

Bruce Company Experienced an Event That Affected Its Financial Statements