HOW WOULD I ANSWER TO THESE POSTS PLEASE AND THANK YOU D Cost accounting is used to determine accurate measuring, recording and reporting of products and services and many companies benefit from using a cost system This system can help make informed decisions on what products to produce, how much to charge for the product, and what products needs to be terminated Job Order System In a job order cost system, the cost is assigned to an individual job or batch of goods being made Each job is customized so it has a unique, distinguishable characteristics which is an important feature of this particular cost system One example of a job order cost system would be the making of a Lamborghini car This is a high end customized car that is not made in bulk Process Cost System This process is the most efficient system to use if you are making large volumes of the same products on a continuous basis and there is no need to customized the job because the process is repetitious and every product is exactly the same An example of a process cost system would be a manufacturer that makes hangers Each hanger is the same and distributed in large quantities thats why this system would work best Similarities Direct materials, direct labor and manufacturing overhead are tracked by both systems Raw materials inventory, incurred factory labor and Manufacturing overhead are all debited Work in process, Finished goods inventory and Costs of goods are all assigned the accumulated manufacturing costs as debits Differences Multiple work in process accounts are used in a process cost system as opposed to a job order cost system that uses one work in process account Charges are posted to individualized jobs and summarized on a job cost sheet by a job cost system and a process cost system summarizes costs in a production cost report for each department When a job is completed in a job cost system, it totals its costs When the period has ended, the process cost system totals its costs Unit cost computations for a process cost system is the total manufacturing costs for the period divided by the equivalent units produced during that period Unit cost computations for a job cost system is the total cost per job divided by the units produced for that job Conclusion Once again cost accounting is an essential tool used to keep track by numbers of all transactions whether its a customized job which uses a job costing system or a production of large volumes or similar products on a continuous basis which uses a process cost system AND THEN THIS ONE To compute production cost report there are four steps that need to be preformed Step 1 Compute the physical unit flow Find the total cost of the units transferred out This amount is referred to as the total units to be accounted for The total units then are accounted for by the output of the period (Units transferred out during the period and any units in process at the end of the period) This amount is referred to as the total units accounted for Step 2 Compute the equivalent units of production Compute the separate costs of WIP for direct materials and for conversion costs Equivalent units are the units in production multiplied by the percentage of those units that are complete or those that are in process Step 3 Compute unit production costs Unit production costs are the costs expressed in terms of equivalent units of production When equivalent units of production are different for materials and conversion costs, we compute three unit costs (materials, conversion, total manufacturing) Step 4 Prepare a cost reconciliation Now determine the cost of goods transferred out of one company to the other and the costs in ending WIP The company then prepares a cost reconciliation schedule to assign the costs to units transferred out and ending WIP

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HOW WOULD I ANSWER TO THESE POSTS? PLEASE AND THANK YOU :D - Cost accounting is used to determine accurate measuring, recording and reporting of

HOW WOULD I ANSWER TO THESE POSTS? PLEASE AND THANK YOU :D

- Cost accounting is used to determine accurate measuring, recording and reporting of products and services and many companies benefit from using a cost system. This system can help make informed decisions on what products to produce, how much to charge for the product, and what products needs to be terminated.

Job Order System

In a job order cost system, the cost is assigned to an individual job or batch of goods being made. Each job is customized so it has a unique, distinguishable characteristics which is an important feature of this particular cost system. One example of a job order cost system would be the making of a Lamborghini car. This is a high-end customized car that is not made in bulk.

Process Cost System

This process is the most efficient system to use if you are making large volumes of the same products on a continuous basis and there is no need to customized the job because the process is repetitious and every product is exactly the same. An example of a process cost system would be a manufacturer that makes hangers. Each hanger is the same and distributed in large quantities thats why this system would work best.

Similarities:

Direct materials, direct labor and manufacturing overhead are tracked by both systems.
Raw materials inventory, incurred factory labor and Manufacturing overhead are all debited
Work in process, Finished goods inventory and Costs of goods are all assigned the accumulated manufacturing costs as debits.

Differences:

Multiple work in process accounts are used in a process cost system as opposed to a job order cost system that uses one work in process account.
Charges are posted to individualized jobs and summarized on a job cost sheet by a job cost system and a process cost system summarizes costs in a production cost report for each department.
When a job is completed in a job cost system, it totals its costs. When the period has ended, the process cost system totals its costs.
Unit cost computations for a process cost system is the total manufacturing costs for the period divided by the equivalent units produced during that period.
Unit cost computations for a job cost system is the total cost per job divided by the units produced for that job.

Conclusion

Once again cost accounting is an essential tool used to keep track by numbers of all transactions whether its a customized job which uses a job costing system or a production of large volumes or similar products on a continuous basis which uses a process cost system.

AND THEN THIS ONE..

- To compute production cost report there are four steps that need to be preformed:

Step 1 Compute the physical unit flow.

Find the total cost of the units transferred out. This amount is referred to as the total units to be accounted for. The total units then are accounted for by the output of the period.(Units transferred out during the period and any units in process at the end of the period) This amount is referred to as the total units accounted for.

Step 2 Compute the equivalent units of production.

Compute the separate costs of WIP for direct materials and for conversion costs. Equivalent units are the units in production multiplied by the percentage of those units that are complete or those that are in process.

Step 3 Compute unit production costs.

Unit production costs are the costs expressed in terms of equivalent units of production. When equivalent units of production are different for materials and conversion costs, we compute three unit costs. (materials, conversion, total manufacturing)

Step 4 Prepare a cost reconciliation.

Now determine the cost of goods transferred out of one company to the other and the costs in ending WIP. The company then prepares a cost reconciliation schedule to assign the costs to units transferred out and ending WIP.