Job order and process cost accounting systems

Job order and process cost accounting systems
Job order and process cost accounting systems

We can write this or a similar paper for you! Simply fill the order form!

Job order and process cost accounting systems

ORDER INSTRUCTIONS:

Use the Assessment 2 Template to complete Part 1 and Part 2. Each part is a different tab in the template.

For Part 3, create a Microsoft Word document. Submit both the completed template and the Word document for this assessment.

Part 1: Using Part 1 of the template, read the Central Manufacturing Company scenario and then complete the following:

1. Determine the unit cost for the month in finishing.

2. Determine the total cost of the products transferred to finished goods.

3. Determine the total cost of the ending work in process inventory.

Part 2: Using Part 2 of the template, solve the Central Manufacturing Company problems using an average cost processing system.

Part 3: In a 1–2-page Microsoft Word document, compare and contrast how job order and process cost accounting systems differ for each of the following items:

1. Materials.

2. Labor.

Below is a partial answer to the above homework questions by one of our writers. If you are interested in a custom non plagiarized top quality answer, click order now to place your order.

Job order and process cost accounting systems Essay

Job costing is a system used in the production of heterogeneous products. The difference in the products produced is known as the creation of a job order cost record for each item. Both the direct material as well as the direct labor costs will be reported in the job cost record and any production overhead incurred (Braun et al., 2014). Process costing is an accounting system used to determine the cost of the product at each stage of production.

It is adopted where the goods produced are manufactured in a sequence of processes that are continuous. Unit cost under individual costs is determined then summed up to give an average unit cost for the product (Braun et al., 2014). The section below provides a comparison between job order costing and process accounting orders in terms of materials and labor.

Materials

Similarities

Both methods have the same aim of determining the total cost of materials used. Both job order and process costing have the same workflow, where the materials inventory is recorded in a separate account and then the costs are transferred to work in the process account (Braun et al., 2014). Another similarity in both systems is that the direct material cost is included in the product cost. The management uses the unit cost of materials for decision-making. To achieve this, management will evaluate…….

We can write this or a similar paper for you! Simply fill the order form!

Process Cost Accounting Assignment

Process Cost Accounting
Process Cost Accounting

We can write this or a similar paper for you! Simply fill the order form!

Process Cost Accounting

ORDER INSTRUCTIONS

Overview

Complete a 3-part assessment in which you determine costs, solve problems using an average cost processing system, and compare and contrast how job order and process cost accounting systems differ for various items.

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

  • Competency 1: Operate product-based cost accounting systems.
    • Compute unit cost in a process cost system.
    • Compute total cost of products transferred to finished goods.
    • Compute total cost of the work in a process inventory.
    • Compute unit cost for department and completed units.
    • Calculate equivalent units of production.
  • Competency 4: Apply cost analysis to assist management decision making.
    • Compare and contrast job order and process cost systems relative to labor, materials, and factory overhead.

Questions to Consider

To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.

  • What would be the effect on the unit cost of finished goods if an estimate of the stage of completion of work in process was too high or too low?
  • Why is it usually reasonable to assume that labor and factory overhead are added evenly throughout the production process?

Resources

VanDerbeck, E. J. (2013). Principles of cost accounting (16th ed.). Mason, OH: South-Western Cengage Learning.

  • Chapters 5 and 6.
  • Wild, J. J., Shaw, K. W., & Chiappetta, B. (2011). Financial and managerial accounting: Information for decisions (4th ed.). New York, NY: McGraw-Hill.

We can write this or a similar paper for you! Simply fill the order form!

Process Cost Accounting

Assessment Instructions

Use the Assessment 2 Template to complete Part 1 and Part 2. Each part is a different tab in the template. For Part 3, create a Microsoft Word document. Submit both the completed template and the Word document for this assessment.

Part 1: Using Part 1 of the template, read the Central Manufacturing Company scenario and then complete the following:

  1. Determine the unit cost for the month in finishing.
  2. Determine the total cost of the products transferred to finished goods.
  3. Determine the total cost of the ending work in process inventory.

Part 2: Using Part 2 of the template, solve the Central Manufacturing Company problems using an average cost processing system.

Part 3: In a 1–2-page Microsoft Word document, compare and contrast how job order and process cost accounting systems differ for each of the following items:

  1. Materials.
  2. Labor.
  3. Factory overhead.

Be specific, providing examples as needed, and follow APA style for citations and references. Use 12-point font and double space your paper.

We can write this or a similar paper for you! Simply fill the order form!