Question

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

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 ago

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,...

Question

Discuss the uses of a process cost system and how it compares to a job order...