What is a job order cost system? Describe a situation in which you would use job...

What is a job order cost system? Describe a situation in which you would use job order cost information. What type of information is useful in making your decision?

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Job order costing system is generally used by companies that manufacture a number of different products. It is a widely used costing system in manufacturing as well as service industries.Job order costing or job costing is a system for assigning and accumulating manufacturing costs of an individual unit of output. The job order costing system is used when the various items produced are sufficiently different from each other and each has a significant cost.

Since there is a significant variation in the items manufactured, the job order costing system requires a separate job cost record for each item (or each job or special order). The job cost record will report each item's direct materials and direct labor that were actually used and an assigned amount of manufacturing overhead.

The job cost records also serve as the subsidiary ledger or documentation for the manufacturer's cost of the work-in-process inventory, the finished goods inventory, and the cost of goods sold.

When companies accept orders or jobs for different products, the assignment of cost to products becomes a difficult task. In these circumstances, the cost record for each individual job is kept because each job have a different product and, therefore, different cost associated with it

ekkarill92 answered 1 year ago

describe the flow of manufacturing cost in a Job Order Cost System.

1. Identify which costing system—job order or process cost— the following companies would primarily use: (a)...

1. Identify which costing system—job order or process cost— the following companies would primarily use: (a) Quaker Oats, (b) Jif Peanut Butter, (c) Gulf Craft (luxury yachts), and (d) Warner Bros. Motion Pictures. 2. What is meant by the term “equivalent units of production”? 3. Soria Co. started and completed 2,000 units for the period. Its beginning inventory is 800 units 25% complete and its ending inventory is 400 units 20% complete. Soria uses the FIFO method to compute equivalent...

Define a job order cost system and provide 3 examples of products that would use this...

Define a job order cost system and provide 3 examples of products that would use this system: Define:____________________________________________________________________________________________________________________________________________________________________ Examples: 1.________________________________________________________ 2.________________________________________________________ 3.________________________________________________________ Define a process cost system and provide 3 examples of products that would use this system: Define:____________________________________________________________________________________________________________________________________________________________________ Examples: 1.________________________________________________________ 2.________________________________________________________ 3.________________________________________________________

Which type of cost system, process or job order, would be best suited for each of...

Which type of cost system, process or job order, would be best suited for each of the following: (a) TV assembler, (b) building contractor, (c) automobile repair shop, (d) paper manufacturer, (e) custom jewelry manufacturer? Give reasons for your answers. In a job order cost system, direct labor and factory overhead applied are debited to individual jobs. How are these items treated in a process cost system and why? Cite and give credit to the author that you are citing

1. In a job-order cost system, what would back up the balance in the Work in...

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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;...

A) Which of the following industries would typically use job order costing, and which would typically...

A) Which of the following industries would typically use job order costing, and which would typically use process costing? Clothing factories Accounting consulting firms Food companies Shampoo manufacturer Aircraft manufacturing company Sports drink manufacturer B) Fortress Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 1,200 tons from the Casting Department. During July, the Rolling Department completed 1,100 tons, including 150 tons of...

Which type of cost system, process, or job order is best for each of the following:...

Which type of cost system, process, or job order is best for each of the following: Jewelry maker? Give reasons for your answers. In the labor order system, direct labor and factory overhead are paid to individual jobs. How are these treated in the process cost system and why?

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What is a job order cost system? Describe a situation in which you would use job...

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