Unformatted text preview: 16-2016-34 (continued)A job order cost system also allows costs from several manufacturingoperations to be traced to a single job order. This helps The MachineShop determine the costs of cutting, drilling, bending, and weldingwhich might all be required for one job.The job order cost accounting system is appropriate for constructionand repair work when a job order consists of only a single unit as isoften the case for The Machine Shop. Keeping records of costs by joborder provides a company like The Machine Shop with information usefulfor estimating the costs of specific kinds of jobs which is helpful indetermining the price it should charge when customers place an order.16-35 A process cost accounting system is best suited for Chemicals-R-Us.The company produces its products continuously in large quantities withall units of a product being identical. Furthermore, it usesall units of a product being identical....
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- Fall '07
- job order cost, ChemicalsRUs, The Machine Shop