Job Costing

Chapter 3 Systems Design: Job-Order Costing Solutions to Questions 3-1By definition, command smash consists of comprises that cannot a lot be traced to products or business concerns. Therefore, if they ar to be assigned to products or dividing lines, command processing knock time be must be everyocated rather than traced. 3-2Job- govern salute 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 costing. 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 acknowledge 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 uni t product cost. The job cost sheet is also a control account for: (1) de-termining how some(prenominal) units have been sold and determining the cost of these units; and (2) de-termining how many units are still in inventory at the dying 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 constitutional criterion in the apportioning base. The-re aft(prenominal), overhead is applied to jobs by mul tiplying the predetermined overhead rate by ! the actual make out of the parcelling base that is incurred for each job. The most common allocation base is direct labor-hours. 3-5A sales order is issued after an harmony has been reached with a customer on quantities, prices, and shipment dates for goods. The sales order forms the primer coat 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 nab a full essay, order it on our website: BestEssayCheap.com

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