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In: Accounting
Discuss the uses of a process cost system and how it compares to a job order...
Discuss the uses of a process cost system and how it compares to a job order system
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Expert Solution
Process costing is a method of costing which is used when manufacture takes place through multiple processes. The raw material would flow through 2 or more process before finished goods are produced. A process costing method is useful in the following situations
· production of standard and identical units
· production is on continuous and large scale basis
· production order is not customer order specific
· production orders are market driven and units produced are sold in open market
· Cost is accumulated at each process or departmental level
· When normal and abnormal losses and gains have to be accounted.
· The output of one process becomes the input for the next process
· Work in process units are expressed in equivalent units of production
On the other hand job costing has the following features
· Each job is customer order oriented
· Each job order has a separate identity from one another
· Cost is accumulated for each job level
· Separate cost record is maintained for each job
· Profit can be determined at each job order level
ekkarill92 answered 2 years agoRelated Solutions
Discuss the uses of a process cost system and how it compares to a job order...
Discuss the uses of a process cost system and how it compares to
a job order sytem. Can you provide examples of each?
Entries for Costs in a Job Order Cost System Velasco Co. uses a job order cost...
Entries for Costs in a Job Order Cost System
Velasco Co. uses a job order cost system. The following data
summarize the operations related to production for July:
Materials purchased on account, $695,900
Materials requisitioned, $584,560, of which $75,990 was for
general factory use
Factory labor used, $716,780, of which $136,190 was
indirect
Other costs incurred on account for factory overhead, $167,020;
selling expenses, $257,480; and administrative expenses,
$153,100
Prepaid expenses expired for factory overhead, $32,010; for
selling expenses, $27,140;...
Entries for Costs in a Job Order Cost System Munson Co. uses a job order cost...
Entries for Costs in a Job Order Cost System
Munson Co. uses a job order cost system. The following data
summarize the operations related to production for July:
Materials purchased on account, $732,780
Materials requisitioned, $615,540, of which $80,020 was for
general factory use
Factory labor used, $754,760, of which $143,400 was
indirect
Other costs incurred on account for factory overhead, $175,870;
selling expenses, $271,130; and administrative expenses,
$161,210
Prepaid expenses expired for factory overhead, $33,710; for
selling expenses, $28,580;...
Entries for Costs in a Job Order Cost System Munson Co. uses a job order cost...
Entries for Costs in a Job Order Cost System
Munson Co. uses a job order cost system. The following data
summarize the operations related to production for July:
Materials purchased on account, $496,630
Materials requisitioned, $417,170, of which $54,230 was for
general factory use
Factory labor used, $511,530, of which $97,190 was
indirect
Other costs incurred on account for factory overhead, $119,190;
selling expenses, $183,750; and administrative expenses,
$109,260
Prepaid expenses expired for factory overhead, $22,840; for
selling expenses, $19,370;...
Discuss cost systems and the flow of costs in a job order system Discuss how to...
Discuss cost systems and the flow of costs in a job order
system
Discuss how to determine and use a predetermined overhead rate -
include how to calculate the predetermined overhead rate
Discuss journal entries for assigning costs to jobs and what
entries are needed when a jobs is completed and sold
Discuss under and overapplied manufacturing overhead
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order...
Entries for Costs in a Job Order Cost System
Royal Technology Company uses a job order cost system. The
following data summarize the operations related to production for
March:
Materials purchased on account, $591,670.
Materials requisitioned, $497,000, of which $64,610 was for
general factory use.
Factory labor used, $609,420, of which $115,790 was
indirect.
Other costs incurred on account for factory overhead, $142,000;
selling expenses, $218,920; and administrative expenses,
$130,170.
Prepaid expenses expired for factory overhead were $27,220; for
selling...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order...
Entries for Costs in a Job Order Cost System
Royal Technology Company uses a job order cost system. The
following data summarize the operations related to production for
March:
Materials purchased on account, $820,330.
Materials requisitioned, $689,080, of which $89,580 was for
general factory use.
Factory labor used, $844,940, of which $160,540 was
indirect.
Other costs incurred on account for factory overhead, $196,880;
selling expenses, $303,520; and administrative expenses,
$180,470.
Prepaid expenses expired for factory overhead were $37,740; for
selling...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order...
Entries for Costs in a Job Order Cost System Royal Technology
Company uses a job order cost system. The following data summarize
the operations related to production for March: Materials purchased
on account, $738,430. Materials requisitioned, $620,280, of which
$80,640 was for general factory use. Factory labor used, $760,580,
of which $144,510 was indirect. Other costs incurred on account for
factory overhead, $177,220; selling expenses, $273,220; and
administrative expenses, $162,450. Prepaid expenses expired for
factory overhead were $33,970; for selling...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order...
Entries for Costs in a Job Order Cost System
Royal Technology Company uses a job order cost system. The
following data summarize the operations related to production for
March:
Materials purchased on account, $492,950.
Materials requisitioned, $414,080, of which $53,830 was for
general factory use.
Factory labor used, $507,740, of which $96,470 was indirect.
Other costs incurred on account for factory overhead, $118,310;
selling expenses, $182,390; and administrative expenses,
$108,450.
Prepaid expenses expired for factory overhead were $22,680; for
selling...
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order...
Entries for Costs in a Job Order Cost System Royal Technology
Company uses a job order cost system. The following data summarize
the operations related to production for March: Materials purchased
on account, $770,000. Materials requisitioned, $680,000, of which
$75,800 was for general factory use. Factory labor used, $756,000,
of which $182,000 was indirect. Other costs incurred on account for
factory overhead, $245,000; selling expenses, $171,500; and
administrative expenses, $110,600. Prepaid expenses expired for
factory overhead, $24,500; for selling expenses,...
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