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M17-17. For each of the following situations, indicate whether job order or process costing is more appropriate and why? a. Building contractor for residential dwelling

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M17-17. For each of the following situations, indicate whether job order or process costing is more appropriate and why? a. Building contractor for residential dwelling is Job order. Because the cost to pay a building contractor and the building are unique and typically produced in a non-continuous manner. b. Manufacturer of nylon yarn that sells to fabric-making textile companies is process. These are produced in a continuous manner. Each item is accountable and it is possible to account for a single item. c. An evening gown manufacturer that makes gowns in several different fabrics, colors, styles, and sizes would be job order. I say Job order because this seems to be tailored in a custom way and each item has different variables with time, cost of materials and variation of costs in fabrics. Unless the options were set and you can produce several continuously than it would change to process, but in this case it is job order. (I. A. Hosiery mill that manufacturers a one size ts all product is Process. These are manufactured continuously and it is easy to account for each item and the costs that go into it does not vary. e. A vehicle battery manufacturer that has just received an order for 400,000 identical batteries to be delivered and completed over the next 12 months is considered Process. The costs to produce these batteries is the same as the next and continuous manufacturing will make it process especially since they are identical batteries

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