Classify whether each one is JOB ORDER COSTING SYSTEM or PROCESS COSTING SYSTEM? And Why 1. Famous
Question:
Classify whether each one is JOB ORDER COSTING SYSTEM or PROCESS COSTING SYSTEM? And Why
1. Famous Cheese Spread was created by a family in a small town in Nebraska. Its website says it sells to around 60 grocery stores in central and eastern Nebraska and also wholesale to Affiliated Midwest, who distributes the product to more than 850 stores in 16 states. Their one product consists of a blend of American cheese, cheddar cheese, salad dressing, pimentos, green peppers, and secret seasonings. It is sold in 16-oz. size and 32-oz size, plastic containers. Although the website says that the largest part of sales occur in October through December, the business does manufacture its product year-round, and has been featured at the Nebraska State Fair.
2. WoodsRus company produces crown moulding from a special variety of cedar trees that grows near their town. Business has increased to the point where the two owners of the firm stay busy six days a week, all year long, producing a steady supply of one specific style of moulding to fill a large, longstanding order contract covering multiple years from a national home improvement store chain that likes the firm's work because of the consistency they achieve in meeting the specifications for identical product manufacturing with their product output.
n
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young