Question

JUKI ANSWER. Write the word or phrase that best completes each statement or answers the O ulung Uveriledi 20) Given the following products or services, identify which costing system would be more appropriate; job costing or process costing paint surgical operation custom kitchen cabinets batches of cellular telephones cereal 21) Given the following products or services, identify which costing system would be more appropriate; job costing or process costing. airplanes soft drinks office buildings custom swimming pools Dell personal computers D) -

Answer 1

20. Paint = process costing

Surgical operation = job costing

Custom kitchen cabinets = job costing

Bathes of cellular telephone = process costing

Cereal= process costing

21. Airplanes= job costing

Soft drinks= process costing

Office building = job costing

Custom swimming pool=job costing

Dell personal computer= process costing

Process costing : it's method of assigning the cost at level of production to determine the cost of each unit or each product. It's suitable for large production or mass production.

Process costing is used when there is difficult to determine the separate output of the production level, it's a continuous process. Also cost assigned to batches of production.

Paint , cereal , batches of cellular phones, soft drinks and Dell personal computer. So that process cost is used for making the large amount of similar product.

Job costing: it's a costing method of recording and tracking the expenses of manufacturing each product or units. It's identify the total cost of each level. Job costing included the Direct materials, labour and overhead. Job costing used by the airplanes manufacturer to find cost airplanes at each level of Job and Cost of each parts of airplanes. In construction work also used Job costing, An example is office building. In Hospital job costing system is used, Example surgical operation, Each level of treatment and cost to different levels of Doctor and nurses involved in operation. Custom kitchen cabinets and swimming pool is an example of Job costing to determine the cost to each level of construction and it's design.