COMM-2016EL Final: Chapter 6 - Job Costing
29 Oct 2017
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Job costing is used whenever the cost object is a distinct unit or batch. Process costing is used for mass produced objects. Think of nails, soup cans, paper is custom-made and is unique will require the accountants to use (cid:498)job costing(cid:499). clips, etc. Large quantities of identical units are costed using (cid:498)process costing(cid:499). A printing company accepts a job to print 500 posters for . The following direct costs are traced directly to the job, #245: Overhead or indirect costs are a bit trickier!! Assume the following indirect costs for the month associated with the print shop: We must assign part of the ,000 to job #245. Lets use direct labour hours for our base. Assume during the month there were 315 labour hours (for all jobs). Job costing system overview (cid:498)the big picture(cid:499): machines, usually in a factory setting; requisition slips and time cards).
