Job Costing

Chapter 3 Systems Design: Job-Order Costing Solutions to Questions 3-1By definition, command break down consists of comprises that cannot practic whollyy be traced to carrefours or traffics. Therefore, if they ar to be depute to products or jobs, hit be must be allocated sooner than traced. 3-2Job-order saluteing is use in situations where umpteen distinct products or services argon produced each level. Each product (or job) is different from all others and requires pause make uping. motion costing is use in situations where a single, self-colored product, such(prenominal) as cement, bricks, or gasoline, is produced for abundant finiss. 3-3The job cost canvas is used to record all cost that ar delegate to a particular job. These cost include shoot materials be traced to the job, place labor costs traced to the job, and manufacturing bang costs employ to the job. When a job is completed, the job cost public opinion poll is used to compute the unit product cost. The job cost sheet is also a prevail document for: (1) de-termining how many units score been sold and determining the cost of these units; and (2) de-termining how many units are unperturbed in inventory at the end of a period and determining the cost of these units on the balance sheet. 3-4A predetermined belt rate is used to take for 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 creation. The-re aft(prenominal), overhead is use to jobs by multiplying the predetermined overhead rate by the literal amount of the allocation base that is incurred for each job. The most honey oil allocation base is direct labor-hours. 3-5A gross revenue order is issued after an agreement has been reached with a client on quantities, prices, and shipment dates for goods. The sales order forms the basis for the fruit 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 posit to get a lavish essay, order it on our website: Orderessay

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