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Cost Ordering

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Please help with the following problem. Provide at least 300 words.

Need help in researching a business that uses job order costing and understanding the complete breakdown of the job order costing (i.e. the process and the documents used to accumulate product costs) that the business uses.

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This solution provides some strong points concerning job cost ordering. The explanation is given in 372 words with two references.

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A example of a business that uses job order costing is one that makes three types of electrical water pumps. It makes pumps for residences, commercial pumps, and pumps for irrigation. Each pump is made in at least four different sizes. Using job order costing, the company classifies its manufacturing costs into three broad categories: namely, direct materials, direct labor, and manufacturing overhead (Shim. J, & Siegel. J, 2009).

Using Job order costing, at the beginning of the pump making process a document called 'bill of materials' is used. This document lists the type and ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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