Job Order Costing From The Book Managerial Accounting

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1A. Chapter-2, Job Order Costing from the book Managerial Accounting already read. 1B. Chapter-3, Process Costing from the book Managerial Accounting already read. 2A. A period cost or period expense is an expense made in a certain period of time, but it is not seen immediately neither in the production processes nor in the products created. It is the disbursement makes in the same period of time. It is immediately charged to the income statement. It means, they are all the expenses additionally done in order to sell the products such as storage, delivery and administration costs. They are classified as distribution and administration costs and are not incorporated in the cost of inventory. However, product cost is the value of the…show more content…
The formula is: Beginning + inputs – ending = outputs. Therefore, we can see the work-in-process putting the number of units (costs) into the same outputs formula, then we will have the direct materials put into production. Finally, all the general expenses, direct materials, etc. go in the production process. In other words, the COGSM are all the costs, expenses of direct materials and labor. 3A. Job Order Costing System is a a method that determines how much is the final cost of a product from the beginning (when it was made) and through the process of fabrication it. Some examples are: clothing factories (ZARA, GUESS, ARMANI), food companies (NESTLE; KELLOG; Pinnacle Foods), air craft manufacturing companies (B/E Aerospace, B&W, Boeing & Westervelt, Bartlett Aircraft), among others. 3B. Process Costing is a method that shows how the costs were accumulate and given to each product. Companies uses this method for the many products that are similar. It also takes into account direct and indirect costs. Some xamples are: cereal companies (Kashi, QUAKER, Chreerios), bread companies (BIMBO; Rainbo, WONDER), and candy companies (Ferrara Candy Co, Bazooka Candy Brands, and Jelly Belly). 4A. they are all the materials that are not finished yet. The ones that need a process to be finished. They are also any product needed to finish another product. 4B. They are the people or workers who work in transforming the product or service.
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