Description
Must follow the rubric and meet all requirements from the rubric. Please see attached document for rubric. I really appreciate the help!
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Explanation & Answer
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Running Head: ACCOUNTING
Accounting
Institutional Affiliation
Name
Date
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ACCOUNTING
Accounting
Question One
Job costing involves the detailed collection and accumulation of production costs for
specific units. For example, constructing a custom-designed piece of bed would be accounted for
with the job costing systems. The labour costs on the specific piece of furniture are recorded in a
timesheet and assembled in a cost sheet. Additionally, any wood used in the construction of the
furniture is charged on the production job linked to the piece produced. Job costing method helps
when it comes to charging the customer for the materials used and the work performed. It also
helps the organization track the profitability of the company in terms of its products.
On the other hand, process costing pertains to the accumulation of costs for lengthy
production runs that are homogenous to each other. For example, the production of 100,000
gallons of gasoline requires that the oil used in the process and the labor be factored in one cost
account and divided by the number of units produced. Process costing usually occurs on the
department level. From these descriptions; job costing can be distinguished from process costing
with the following factors;
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