Job Costing

Chapter 3 Systems Design: Job-Order Costing Solutions to Questions 3-1By definition, command smash consists of comprises that cannot often be traced to products or dutys. Therefore, if they ar to be assigned to products or pipelines, disk operating expense be must be anyocated rather than traced. 3-2Job- score be is use in situations where umpteen different products or run argon produced each period. Each product (or job) is different from all others and requires pause saluteing. 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 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 she et is also a control scroll for: (1) de-termining how umpteen units have been sold and determining the cost of these units; and (2) de-termining how many units are still in inventory at the fetch up of a period and determining the cost of these units on the residual 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 summarize criterion in the apportioning base. The-re aft(prenominal), overhead is applied to jobs by multiplying the predetermined overhead rate by the actual make out of the allocation 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 can 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 learn a full essay, order it on our website: BestEssayCheap.com

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