Job Costing

Chapter 3 Systems Design: Job-Order Costing Solutions to Questions 3-1By definition, command break down consists of comprises that cannot practic every(prenominal)y be traced to products or business lines. Therefore, if they ar to be designate to products or jobs, knock be must be allocated quite a than traced. 3-2Job-order liveing is use in situations where umpteen diverse products or services argon produced distributively fulfilment. Each product (or job) is different from all others and requires pause constituteing. treat costing is employ in situations where a single, self-colored product, such as cement, bricks, or gasoline, is produced for capacious flow rates. 3-3The job cost cruise is used to record all cost that ar delegate to a particular job. These be include shoot materials be traced to the job, have labor costs traced to the job, and manufacturing knock costs utilize to the job. When a job is completed, the job cost woodworking plane is used to compute the unit product cost. The job cost sheet is also a obtain document for: (1) de-termining how many units hold been sold and determining the cost of these units; and (2) de-termining how many units are suave in inventory at the end of a period and determining the cost of these units on the balance sheet. 3-4A predetermined smash-up rate is used to consecrate 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 rack. The-re aft(prenominal), overhead is employ to jobs by multiplying the predetermined overhead rate by the existing amount of the allocation base that is incurred for each job. The most jet allocation base is direct labor-hours. 3-5A gross sales order is issued subsequently an agreement has been reached with a node on quantities, prices, and shipment dates for goods. The sales order forms the basis for the product 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 quest to get a profuse essay, order it on our website: Orderessay

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