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Compare Job Order Costing versus Process costing

Compare Job Order Costing versus Process costing

Instructions – PLEASE READ THEM CAREFULLY

  • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
  • Assignments submitted through email will not be accepted.
  • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • Students must mention question number clearly in their answer.
  • Late submission will NOT be accepted.
  • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Submissions without this cover page will NOT be accepted

Assignment Question(s):(Marks5)

Q1.In managerial accounting, costs can be classified by behavior, traceability decision-making, external reporting , prime costs vs conversion costs and Function Wise Classification. Discuss all the above cost classifications and explain the importance of each classification. (2.0 marks)

Answer:

Q2. Compare Job Order Costing versus Process costing (one marks)

Answer:

Q3. ABC Company had the following inventories on May 1, 2019(amounts in SR) (two marks)

Raw Material30,000

Finished Goods40,000

WIP – Material20,000

WIP – Labor20,000

WIP – Manufacturing overhead 15,000

During the month, the cost of material purchased was 130,000 direct labor cost incurred was 140,000 and factory overhead applicable to production was 70,000, on May 31, inventories were:

Raw Material40,000

Finished Goods50,000

WIP – Material15,000

WIP – Labor25,000

WIP Manufacturing overhead10,000

Required:

Prepare Journal entries on May 31, to show the flow of cost through the proper summary T accounts. Assume that sales values were 500,000 on credit

Answer: