Jack: It is ridiculous to use job costing for this. We are producing solvent. Everyone knows that the chemicals are the same. The fact the B$-155$ has high$-$cost labor is because all the senior employees want to work there. We could produce the same product with the employees in B$-159.$ We should be using process costing and consider all the production in both buildings for each month as the batch.

Jill: Jack, the fact is that the military requires us to use a special chemical, and their contracts require we keep track of the costs for their business. If we don't separate the costing, we won't know how profitable either business is$.$

The following is production and cost information for a typical month, July.

$\backslash$table$[[,$M$-$Solv $($B$-,$C$-$Solv $($B$-,],[,155),159,$Total$],[$Units started,$1,900,11,300,13,200],[$Materials cost$,$$$18,000,$$$36,000,$$$54,000$