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ACC200: Job Costing System Project

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Added on  2020-10-05

ACC200: Job Costing System Project

   Added on 2020-10-05

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INTRODUCTIONJob costing system records the cost associated with the particular job and it assist inallocating the cost to the products manufactured by the organisation. This assignment willinclude the information regarding the job costing system and it will assist in calculating the workin progress inventory. Moreover, it will include the information regarding the machine hours. Itwill also provide the information regarding the alternative accounting treatment for over appliedand under applied balances when using the job costing system. This assignment will include theuse of the two accounting treatment for the over or under applied overhead. In this case study, ithas provided information regarding Connectta ltd manufactures for computer work stations. Thisfirm uses the job costing system.1. Appropriateness of the company to use job cost system Job costing involves the accumulation of the cost of materials, labor and overhead for aspecific job. The job costing system involves the use of activities such as material, labor,overhead. The job costing system assist the organisation in identifying the work in processinventory on the basis of specific job. In the job costing system, the product cost is assigned toeach job. It is appropriate for the companies to use job cost system when they are able to identifythe separate products (Altbach, 2015). The company which is performing its services andprovide the products as per the needs of the customers than they are required to use the jobcosting system. As per the job costing system, the cost are first recorded in the work in progressthen they are transferred to the finished goods inventory and after that when the products is beingsold than the cost is being recorded in the income statement as cost of goods sold. The job costing system can be used by the construction company, manufacturingcompany in which the products are being related to the specific job as per the demands of thecustomer. Job costing system is assist in identifying the cost of the product by allocating the costto specific job regarding the direct material, labour, overhead etc. (Laudon and Laudon, 2016.).The job costing system is specifically used by those companies which are required to perform thedifferent job and at the end of the years the profitability is calculated by considering all the jobswhich are being performed by the organisation. The job costing system is useful for thosecompanies which require to perform their job as per the demand and needs of the customers. Thejob costing system involves the use of allocating the cost of material, labour and overhead whichis relate to the specific job in order to determine the profitability associated with each job.1
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