ECONOMICS

Detailed explanation-1: -In job order costing, as and when materials are consumed, they become part of the inventory. Raw material becomes work in progress. Then it becomes finished goods which is then immediately sold because the job was done only after an agreement was made about a sale.

Detailed explanation-2: -Materials, labor, and/or manufacturing overhead can be added in any processing department. Transferred in costs are accounting for as direct materials, direct labor and overhead. Units are always 100% complete for transferred in costs.

Detailed explanation-3: -Which of the following statement is correct with regard to job costing? Job costing differs from most other types of costing system because each cost unit is a job, and no two jobs are exactly the same. Each job is costed separately.

Detailed explanation-4: -Job order costing is a costing method which is used to determine the cost of manufacturing each product. This costing method is usually adopted when the manufacturer produces a variety of products which are different from one another and needs to calculate the cost for doing an individual job.