COST ACCOUNTING
JOB ORDER COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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both a job order and process cost system track the same three manufacturing cost elements-Direct material, Direct labour and manufacturing overhead
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A job order cost system uses only one work in process account, whereas a process cost system uses multiple work in process account
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Manufacturing costs are accumulated the same way in a job order and in a process cost system
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Manufacturing costs are assigned the same way in a job order and in a process cost system
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Detailed explanation-1: -Answer is Option A Explanation: Under job order costing, cost is accumulated at a job level and in process costing system costs are accumulated a…
Detailed explanation-2: -The similarities between job order cost systems and process cost systems are the product costs of materials, labor, and overhead, which are used determine the cost per unit, and the inventory values.
Detailed explanation-3: -The flow of costs in a job order cost system (a) involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done.
Detailed explanation-4: -In a process costing system, when manufacturing overhead costs are applied to the cost of production, they are debited to: the Goods in Process Inventory account.
Detailed explanation-5: -Answer: d. The construction of a new campus building. In a job order costing, the costs are applied in each of the job.