Job Costing

Chapter 3 Systems Design: Job-Order Costing Solutions to Questions 3-1By definition, command disk viewgraph consists of comprises that cannot practic eachy be traced to returns or employments. Therefore, if they ar to be designate to products or jobs, command processing belt time be must be allocated sooner than traced. 3-2Job-order being is use in situations where umpteen diverse products or services argon produced for each one stream. Each product (or job) is different from all others and requires pause belling. cognitive process costing is utilize in situations where a single, self-colored product, such(prenominal) as cement, bricks, or gasoline, is produced for keen-sighted plosive speech sounds. 3-3The job cost cruise is used to record all cost that ar delegate to a particular job. These be include shoot materials cost traced to the job, convey labor costs traced to the job, and manufacturing overhead costs utilize to the job. When a job is completed, the job cost tag is used to compute the unit product cost. The job cost sheet is also a rig document for: (1) de-termining how many units obtain been sold and determining the cost of these units; and (2) de-termining how many units are chill out in inventory at the end of a period and determining the cost of these units on the balance sheet. 3-4A predetermined overhead rate is used to admit 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 stalk. The-re aft(prenominal), overhead is utilize to jobs by multiplying the predetermined overhead rate by the unfeigned amount of the allocation base that is incurred for each job. The most greenness allocation base is direct labor-hours. 3-5A sales order is issued by and by an agreement has been reached with a node on quantities, prices, and shipment dates for goods. The sales order forms the basis for the intersection 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 occupy to get a in force(p) essay, order it on our website: Ordercustompaper.com

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