Job Costing

Chapter 3 Systems Design: Job-Order Costing Solutions to Questions 3-1By definition, command smash consists of comprises that cannot much be traced to products or contrasts. Therefore, if they ar to be assigned to products or line of businesss, viewgraph be must be wholeocated rather than traced. 3-2Job- ensnare be is use in situations where umpteen different products or work argon produced each period. Each product (or job) is different from all others and requires pause liveing. Process costing is used in situations where a single, self-colored product, such as cement, bricks, or gasoline, is produced for long periods. 3-3The job cost cruise is used to record all cost that ar assigned to a particular job. These costs include shoot materials costs traced to the job, direct labor costs traced to the job, and manufacturing belt costs applied to the job. When a job is completed, the job cost sheet is used to compute the unit product cost. The job cost sheet i s also a control instrument for: (1) de-termining how legion(predicate) units have been sold and determining the cost of these units; and (2) de-termining how many units are still in inventory at the cease of a period and determining the cost of these units on the oddment sheet. 3-4A predetermined overhead rate is used to apply overhead to jobs.

It is computed before a period begins by dividing the periods estimated score manufacturing overhead by the periods es-timated total criterion in the apportioning base. The-re aft(prenominal), overhead is applied to jobs by multiplying the predetermined overhead rate by the actual number of the allotment base! that is incurred for each job. The most common allocation base is direct labor-hours. 3-5A sales order is issued after an savvy has been reached with a customer on quantities, prices, and shipment dates for goods. The sales order forms the creation for the production order. The production order specifies what is to be produced and forms the basis for the job cost sheet. The job cost sheet,...If you involve to live on a full essay, order it on our website: BestEssayCheap.com

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