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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

In job order cost accounting, the three elements of manufacturing cost are charged directly to job orders. Why is not necessary to charge manufacturing costs in process cost accounting to job orders?

To determine

Job order costs

It is a method of cost accounting, in which cost is collected and accumulated for each job, work order, or project separately. Especially the job order costing is followed in organizations where customized goods are produced.

To State: The reason why it is not necessary to charge manufacturing costs in process cost accounting, to its job order.

Explanation

Goods manufactured in process cost system are identical units, but in job...

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