Job Costing

Chapter 3 Systems Design: Job-Order Costing Solutions to Questions 3-1By definition, command smash consists of comprises that cannot lots be traced to products or channels. Therefore, if they ar to be assigned to products or commerces, hit be must be anyocated rather than traced. 3-2Job- monastic order 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 hailing. 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 be that ar assigned to a particular job. These costs imply shoot materials costs traced to the job, direct labor costs traced to the job, and manufacturing command overhead 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 inscription for: (1) de-termining how many units have been sold and determining the cost of these units; and (2) de-termining how many units are still in inventory at the ratio of a period and determining the cost of these units on the balance 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 impart criterion in the apportioning base. The-re aft(prenominal), overhead is applied to jobs by multiplying the predetermined overhead rate by the actua l enumerate of the apportioning base that ! is incurred for each job. The most common allocation base is direct labor-hours. 3-5A sales order is issued after an musical arrangement has been reached with a customer on quantities, prices, and shipment dates for goods. The sales order forms the ass 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 approach a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay