Ch. 6 HW Solutions - CHAPTER 6 JOB ORDER AND PROCESS...

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CHAPTER 6 JOB ORDER AND PROCESS COSTING QUESTIONS FOR WRITING AND DISCUSSION 1. Job-order costing accumulates costs by jobs, and process costing accumulates costs by processes. Job-order costing is suitable for operations that produce custom-made products that receive different doses of manufacturing costs. Process costing, on the other hand, is suitable for operations that produce homogeneous products that receive equal doses of manufacturing costs in each process. 4. Unless all your jobs (lawns) are the same size and require the same services, you will need to use a job-order costing system. At minimum, you will need job-order cost sheets for each customer. You will need labor time tickets to record the amount of time spent on each job, both to cost the job and to pay the individual doing the work. A materials requisition form may be needed if fertilizer or weed control products are used (alternatively, it may be possible to just list the amount of product used directly on the job-order cost sheet). The more
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Ch. 6 HW Solutions - CHAPTER 6 JOB ORDER AND PROCESS...

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