You will review how cost accounting involves the measuring, calculating, and recording of product costs. You will see how under a job order cost system are assigned to each job or to each batch of goods. The final objective is to compute the total cost per job.

To remain competitive, companies determine the competitor's product costs. Spyglass Inc. creates various types of industrial glass products.

Scenario:The company states that these are the costs they have incurred with regards to Batch 27A: Customer order quantity 500,000 for July:

Raw materials: $2,000

Molds: $0.40

Labor: $10.00 per hr.

Containers: $2.59

Promotion: $1.00

Marketing: $0.20

Manufacturing overhead: $800.00

• What type of costs will be involved in this job order? Why?

• What type of costs would be included in the manufacturing overhead per product?

• What costs would be period costs?

Answer rating: 100% (QA)

In a job order cost system various types of costs are involved in producing a specific job or batch ... View the full answer