Blueprint Problem: Job-order costing Cost flows The price quoted to the customer is closely tied to the estimated cost in environments in which products are made according to the customer's specifications. Therefore, a company must be able to determine the unit cost of its products for pricing as well as for financial reporting purposes. To track costs in these environments, a Job order costing system is generally used. A job order costing system must be able to identfy each individual job and accumulate its costs separately from the costs of other jobs. Recall the flow of costs used to determine cost of goods manufactured and cost of goods sold. The following flowchart illustrates the flow of costs into Work in Process and Finished Goods. Materials Labor Overhead ob 3 Materials, Labor ?? Work in Process: Job 4 Materials, Labor ?? In job order costing, the costs in Work in Process and Finished Goods can be related to specific jobs. ob 1 Materials, Labor ?? Finished Goods: ob 2 Materials, Labor ?? APPLY THE CONCEPTS: Determine the costs for Work in Process and Finished Goods Job 1 $408 652 175 1235 Job 2 $250 372 165 ob 3 $221 349 90 S 660 Job 4 $316 478 126 $920 Labor Total Complete the table and determine the following account Blueprint Problem: Job-order costing Cost flows The price quoted to the customer is closely tied to the estimated cost in environments in which products are made according to the customer's specifications. Therefore, a company must be able to determine the unit cost of its products for pricing as well as for financial reporting purposes. To track costs in these environments, a Job order costing system is generally used. A job order costing system must be able to identfy each individual job and accumulate its costs separately from the costs of other jobs. Recall the flow of costs used to determine cost of goods manufactured and cost of goods sold. The following flowchart illustrates the flow of costs into Work in Process and Finished Goods. Materials Labor Overhead ob 3 Materials, Labor ?? Work in Process: Job 4 Materials, Labor ?? In job order costing, the costs in Work in Process and Finished Goods can be related to specific jobs. ob 1 Materials, Labor ?? Finished Goods: ob 2 Materials, Labor ?? APPLY THE CONCEPTS: Determine the costs for Work in Process and Finished Goods Job 1 $408 652 175 1235 Job 2 $250 372 165 ob 3 $221 349 90 S 660 Job 4 $316 478 126 $920 Labor Total Complete the table and determine the following account