PROJECT ASSIGNMENT: JOB ORDER COSTING AND PROCESS COSTING ANALYSIS

You are a management accountant at ABC Manufacturing Company, a company that produces a variety of products using both job order costing and process costing systems. Your task is to analyze the costing methods used by the company and provide recommendations for improving cost control and profitability. Follow the instructions below to complete the project:

PART $1$: JOB ORDER COSTING ANALYSIS $(30$ pts$)$

a$)$ Choose one product that is manufactured using job order costing at ABC Manufacturing Company. Provide a brief description of the product and its production process.

b$)$ Identify and describe the different cost elements involved in the production of the chosen product. Include direct materials, direct labor, and manufacturing overhead costs.

c$)$ Select a specific job for the chosen product and calculate the total cost for that job using the appropriate cost elements identified in part b$.$ Use the following information:

Direct materials cost: $$5,000$

Direct labor cost: $$3,000$

Manufacturing overhead rate: $150\%$ of direct labor cost

d$)$ Discuss the advantages and limitations of job order costing for ABC Manufacturing Company. How does it help in providing accurate cost information for each specific job?