Principles of Accounting, Chapter 19: Job Costing and Modern Cost Management Systems:
Principles of Accounting, Chapter 20: Process Costing and Activity-Based Costing:
Five of the following statements are patently false, while the other statements are true. For this assignment, find and mark the five false statements. Then, re-word the false statements to make them true.
- In a process costing environment involving multiple departments, raw materials are only introduced in the first department, but labor and overhead may occur in any department.
- The big difference between job costing and process costing is that with process costing, costs are captured for each process or department rather than for each job.
- A job costing environment uses a job cost sheet, but a process costing environment uses a cost allocation report.
- Process costing would be logically suited to a manufacturer of barbed wire fencing material.
- An item is not considered in the equivalent units calculations until it is a finished good.
- Factory overhead is not applied in a process costing environment.
- It would be logical to maintain a separate Work in Process ledger account for each department.
- The balance sheet of a business that uses process costing methods would include work in process and finished goods, but not raw materials inventory.
- Process costing can be applied on a weighted-average or FIFO basis.
For this week’s reflection, please write three complete and well-composed paragraphs (in your own words) in which you use, as an example, a company that operates in Grenada West Indies. The company you select as an example must be a company that manufactures a product, not a service or merchandising company. Describe what product it makes and whether you think it uses the job-order or process costing method. You don’t have to actually know for certain, but write what you think they use, and explain why you think they use that type of costing method.
Minimum words is 250. Cite references in apa format. see attached file for the information for this part.
|Applied (and actual) factory overhead||8,223,454|
|Beginning work in process||14,550,098|
|Ending work in process||17,559,000|
Satellites are usually constructed to specific customer specifications, and the contract selling price is 125% of cost.
Assuming that the above costs are attributable to several different satellites in various stages of production, how would the cost of direct materials, direct labor, and overhead be tracked to specific jobs? How important is the job costing system in establishing a fair selling price for each satellite?