Job Order Costing, Determining Costs

User Generated

Funjarre

Business Finance

Description

ob Order Costing, Determining Costs

In order to remain competitive, companies determine the competitor’s product costs. Spyglass Inc. creates various types of industrial glass products.

The company states that these are the costs they have incurred with regards to Batch 27A: Customer order quantity 500,000 for July:

Raw materials: $2,000

Molds: $.40

Labor: $10.00 per hr.

Containers: $2.59

Promotion: $1.00

Marketing: $0.20

Manufacturing overhead: $800.00

Checklist:

  1. What type of costs will be involved in this job order? Why?
  2. What type of costs would be included in the manufacturing overhead per product?
  3. What costs would be period costs?


Reference

Weygandt, J., Kimmel, P. & Kieso, D. (2015). Accounting principles (12th ed.). Hoboken, NJ: John Wiley & Sons, Inc.

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Explanation & Answer

Thank you so much

Running head: Job order costing

1

Job order costing:
Name:
Institution affiliation:
Date:

Job order costing
1.)

2

Costs involved in job order

This are manufacturing costs that are assigned to a batch of products or a given individual
product
1. Raw Materials equaling $2,000
2. Molds equaling $40
3. Labor equaling $10...


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