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Your school club is considering starting a T-shirt priniting business. Since you are taking managerial accounting this semester, your friends look to you to explain

Your school club is considering starting a T-shirt priniting business. Since you are taking managerial accounting this semester, your friends look to you to explain the difference between job order and process costing and recommend one to use for the new business. The club is considering two different options for the business:

1. The business will offer one design (logo) for the T-shrits. Customers will be able to order the T=shirt with the design in 5 colors.

2. The business will offer custom T-shirts for clubs and organizations on campus. There will be 5 colors to chose from and the club or organization will be responsible for providing the design and where it will go on the T-shirt. (Some designs are likely to be more detailed than others.)

Include the following in your initial discussion post:

  • A comparison of job order costing and process costing
  • The types of cost that will need to be accounted for in making a T-shirt (be sure to include examples of manufacturing overhead costs)
  • Your recommendation for each of the two options discussed above and why,

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