Question

Job order costing accumulates and records costs by job and assists managers in evaluating actual and expected costs related to direct materials, direct labor, and factory overhead costs.

Select a company that would employ a job order costing system. Research the company and discuss why a job order costing system is the 'correct' fit for that organization. Discuss a product the company sells and discuss what direct and indirect costs would be included on the job cost sheet.

Follow the minimum requirements for discussion board posts located in the general discussion area. Recall, those are the minimum requirements, more posts are always encouraged.

Answer 1

Answer:

Job order costing is the strategy for costing where cost is determined for each activity and reasonable for organizations that produce assortment of items .

Custom fitting or tailoring organizations may utilize job order costing .

On account of custom fitting organizations, they get customized order concurring the necessities of client and each order put by client's is a job. So,The cost will be apportioned to each activity and ob order costing technique will be appropriate for this association

Assume, Company sells customized kurthi to a client .

Direct expense/cost:

• Direct material cost, for example, texture, buttons and threads.
• Direct work cost based on work hours .
• Direct cost, for example, kurthi structuring charges paid to fashioner

Indirect expense/cost:

• Indirect material cost, for example, greasing up oil for tailoring machine .
• Indirect work cost, for example, chief compensation .
• Indirect cost, for example, deterioration of fitting machine, repairing costs of tailoring machine.