Assignment 1 - Distinguish between Job Order Costing and Process Costing My answ
ID: 2332634 • Letter: A
Question
Assignment 1 - Distinguish between Job Order Costing and Process Costing
My answers are:
1. a manufacturer of refrigerators-Process costing
2. a manufacturer of specialty wakeboards-Job order
3. a manufacturer of luxury yachts-Job order
4. A professional services firms-job order
5. A landscape contractor-job order
6. A custom home builder-job order
7. A cell phone manufacturer-process cost system
8. A manufacturer of frozen pizza-process cost
9. A manufacturer of vitamins-process cost
10. A manufacturer of tennis shoes-process cost
Please check and point out why wrong
Explanation / Answer
1. A manufacturer of refrigerators - Process costing.
2. A manufacturer of specialty wakeboards - Process costing.
This is because even though specialty wakeboards may not be manufactured in large quantities, they are still not extremely distinct like a custom home builder (point 6) or a manufacturer of luxury yachts (point 3). Also the specialty wakeboards will still be identical to each other and therefore, process costing should be used.
3. A manufacturer of luxury yachts - Job order costing.
4. A professional services firm - Job order costing.
5. A landscape contractor - Job order costing.
6. A custom home builder - Job order costing.
7. A cell phone manufacturer - Process costing.
8. A manufacturer of frozen pizza - Process costing.
9. A manufacturer of vitamins - Process costing.
10. A manufacturer of tennis shoes - Process costing.