Refer to the chapter opener regarding Quintin Middleton and his company, Middleton Made Knives. All successful businesses track their costs, and it is especially important for start-up businesses to monitor and control casts.
Required
1. Assume that Middleton Made Knives uses a job order costing system. For the basic cost category of direct materials, explain how a job cost sheet for Middleton Made Knives would differ from a job cost sheet for a service company.
2. For the basic cost categories of direct labor and overhead, provide examples of the types of costs that would fall into each category for Middleton Made Knives.