Distinguish between job order costing system and process costing system.

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Answer 1

Question

Chapter 12, Problem 1LO

To determine

Distinguish between job order costing system and process costing system.

Expert Solution & Answer

Explanation of Solution

The differences between job order costing system and process costing system is as follows:

Basis of distinction	Job-order costing system	Process costing system
Meaning	Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.	Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.
Applicability of the system	This costing system is applicable when the production jobs or batches are heterogeneous (distinct from each other).	This costing system is applicable when the products are homogeneous (similar products).
Maintenance of subsidiary records	Under this system, job cost sheet is maintained.	Under this system, job cost sheet is not maintained.
Accounting for work-in process inventory	The total costs incurred for each job or batch is transferred to the work-in process inventory account.	The total costs incurred for each product is transferred to the work-in process inventory account of the respective department.

Table (1)

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Answer 2

Question

Chapter 12, Problem 1LO

To determine

Distinguish between job order costing system and process costing system.

Expert Solution & Answer

Explanation of Solution

The differences between job order costing system and process costing system is as follows:

Basis of distinction	Job-order costing system	Process costing system
Meaning	Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.	Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.
Applicability of the system	This costing system is applicable when the production jobs or batches are heterogeneous (distinct from each other).	This costing system is applicable when the products are homogeneous (similar products).
Maintenance of subsidiary records	Under this system, job cost sheet is maintained.	Under this system, job cost sheet is not maintained.
Accounting for work-in process inventory	The total costs incurred for each job or batch is transferred to the work-in process inventory account.	The total costs incurred for each product is transferred to the work-in process inventory account of the respective department.

Table (1)

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Answer 3

Question

Chapter 12, Problem 1LO

To determine

Distinguish between job order costing system and process costing system.

Expert Solution & Answer

Explanation of Solution

The differences between job order costing system and process costing system is as follows:

Basis of distinction	Job-order costing system	Process costing system
Meaning	Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.	Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.
Applicability of the system	This costing system is applicable when the production jobs or batches are heterogeneous (distinct from each other).	This costing system is applicable when the products are homogeneous (similar products).
Maintenance of subsidiary records	Under this system, job cost sheet is maintained.	Under this system, job cost sheet is not maintained.
Accounting for work-in process inventory	The total costs incurred for each job or batch is transferred to the work-in process inventory account.	The total costs incurred for each product is transferred to the work-in process inventory account of the respective department.

Table (1)

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Answer 4

Question

Chapter 12, Problem 1LO

To determine

Distinguish between job order costing system and process costing system.

Expert Solution & Answer

Explanation of Solution

The differences between job order costing system and process costing system is as follows:

Basis of distinction	Job-order costing system	Process costing system
Meaning	Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.	Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.
Applicability of the system	This costing system is applicable when the production jobs or batches are heterogeneous (distinct from each other).	This costing system is applicable when the products are homogeneous (similar products).
Maintenance of subsidiary records	Under this system, job cost sheet is maintained.	Under this system, job cost sheet is not maintained.
Accounting for work-in process inventory	The total costs incurred for each job or batch is transferred to the work-in process inventory account.	The total costs incurred for each product is transferred to the work-in process inventory account of the respective department.

Table (1)

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Answer 5

Chapter 12, Problem 1LO

To determine

Distinguish between job order costing system and process costing system.

Expert Solution & Answer

Explanation of Solution

The differences between job order costing system and process costing system is as follows:

Basis of distinction	Job-order costing system	Process costing system
Meaning	Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.	Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.
Applicability of the system	This costing system is applicable when the production jobs or batches are heterogeneous (distinct from each other).	This costing system is applicable when the products are homogeneous (similar products).
Maintenance of subsidiary records	Under this system, job cost sheet is maintained.	Under this system, job cost sheet is not maintained.
Accounting for work-in process inventory	The total costs incurred for each job or batch is transferred to the work-in process inventory account.	The total costs incurred for each product is transferred to the work-in process inventory account of the respective department.

Table (1)

Answer 6

Chapter 12, Problem 1LO

To determine

Distinguish between job order costing system and process costing system.

Expert Solution & Answer

Explanation of Solution

The differences between job order costing system and process costing system is as follows:

Basis of distinction	Job-order costing system	Process costing system
Meaning	Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.	Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.
Applicability of the system	This costing system is applicable when the production jobs or batches are heterogeneous (distinct from each other).	This costing system is applicable when the products are homogeneous (similar products).
Maintenance of subsidiary records	Under this system, job cost sheet is maintained.	Under this system, job cost sheet is not maintained.
Accounting for work-in process inventory	The total costs incurred for each job or batch is transferred to the work-in process inventory account.	The total costs incurred for each product is transferred to the work-in process inventory account of the respective department.

Table (1)

Answer 7

Chapter 12, Problem 1LO

To determine

Distinguish between job order costing system and process costing system.

Answer 8

Expert Solution & Answer

Explanation of Solution

The differences between job order costing system and process costing system is as follows:

Basis of distinction	Job-order costing system	Process costing system
Meaning	Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.	Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.
Applicability of the system	This costing system is applicable when the production jobs or batches are heterogeneous (distinct from each other).	This costing system is applicable when the products are homogeneous (similar products).
Maintenance of subsidiary records	Under this system, job cost sheet is maintained.	Under this system, job cost sheet is not maintained.
Accounting for work-in process inventory	The total costs incurred for each job or batch is transferred to the work-in process inventory account.	The total costs incurred for each product is transferred to the work-in process inventory account of the respective department.