1. Describe the characteristics of companies likely to use a job costing system.
ID: 341954 • Letter: 1
Question
1. Describe the characteristics of companies likely to use a job costing system. Explain how these characteristics differ from companies likely to use a process costing system. 2. What information is included on the materials requisition form? 3. What is the purpose of a job cost sheet? Describe the information typically included on a job cost sheet. 4. What information is included on a timesheet? 5. What is the purpose of using a predetermined overhead rate? 6. Review Note 2.23 "Business in Action 2.1" Explain why Boeing likely uses a job costing system. How does the information that comes from a job costing system help Boeing make better decisions? 7. What is a normal costing system, and why do companies tend to use a normal costing system to apply overhead to jobs rather than using actual overhead costs? 1. Describe the characteristics of companies likely to use a job costing system. Explain how these characteristics differ from companies likely to use a process costing system. 2. What information is included on the materials requisition form? 3. What is the purpose of a job cost sheet? Describe the information typically included on a job cost sheet. 4. What information is included on a timesheet? 5. What is the purpose of using a predetermined overhead rate? 6. Review Note 2.23 "Business in Action 2.1" Explain why Boeing likely uses a job costing system. How does the information that comes from a job costing system help Boeing make better decisions? 7. What is a normal costing system, and why do companies tend to use a normal costing system to apply overhead to jobs rather than using actual overhead costs? 1. Describe the characteristics of companies likely to use a job costing system. Explain how these characteristics differ from companies likely to use a process costing system. 2. What information is included on the materials requisition form? 3. What is the purpose of a job cost sheet? Describe the information typically included on a job cost sheet. 4. What information is included on a timesheet? 5. What is the purpose of using a predetermined overhead rate? 6. Review Note 2.23 "Business in Action 2.1" Explain why Boeing likely uses a job costing system. How does the information that comes from a job costing system help Boeing make better decisions? 7. What is a normal costing system, and why do companies tend to use a normal costing system to apply overhead to jobs rather than using actual overhead costs? 7. What is a normal costing system, and why do companies tend to use a normal costing system to apply overhead to jobs rather than using actual overhead costs?Explanation / Answer
1. Comanies which use job costing method produce customissed products for almost every other order but companies which use process costing method produce standardised goods.
Companies which use job costing method produce lower number of outputs as copared to companies which use process based costing.
2. The following information is available on the materials requisition form:-
Date, name of person preparing the requisition, description of items required, quantity of each item required, work rder number, name of account to which requisition is to be billed.
3. The purpose of a job cost sheet is to keep track of all manufacturing costs relating to a particular job so that the final cost of the product can be known and its selling price can be decided. Information typically included on a job cost sheet:
Direct materials used, direct labor used, manufacturing costs incurred to prduce the product.
4.Information regarding the time when the work begun and when it ended is captured on the time sheet so that the exact amount of labor hours used can be computed to assign labor costs.
Note: First 4 question have been answered as per Chegg's policy
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