Job Order Costing Homework Help
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What is job Order Costing?
Also known as job costing, it is the system of allotting manufacturing costs to the group of products. In the case of un-identical products that differentiate from each other in various terms like dimension, usage and shapes etc. the cost is assigned by the help of job order costing method. In this article for Job Order Costing homework Help we discuss how the job order costing is done along with a small example.
Examples from job Order Costing Homework Help Article
There are various business firms that use job order costing as their prominent method for allocation of costs. Our Job Order costing homework Help writers have compiled a few examples of them. They are
Accounting, consulting and legal firms
Manufacturers of ships and airplanes
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Steps in job Order Costing
As explained above in the Job Order Costing homework Help Article the steps are listed below
1. Identification of the job on the basis of it manufacturing process
2. Tracing all the direct costs applied to the job
3. Identifying every indirect cost incurred. It includes manufacturing overheads costs and cost allocation for every item.
4. Indirect costs are applied to the job in the next step by the help of pre known allocation rates.
5. Summation of cost components is done and a total cost is found out.
6. All the under applied manufacturing costs and over applied overhead manufacturing costs are closed and cost of goods sold is collected in the income statement.
7. Calculation of revenue and profit at the end by using the values defined above.
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