Simply Dogs manufactures items for dogs. Their newest item will be a dog bowl in
ID: 2499348 • Letter: S
Question
Simply Dogs manufactures items for dogs. Their newest item will be a dog bowl in the shape of a bone. The bowls will be available in stores across the country. They are also offering a new doggy house. The house is custom made, customers will design the house themselves. Once ordered, it will be delivered in one month. What costing methods should Simply Dogs use to track the costs associated with these items?
Both should use a job-order system
Both should use a process costing system
Job-order for the dog bowl and process costing for the doggy house
Process costing for the dog bowl and job-order for the doggy house
Explanation / Answer
Ans (2) Both shoud use the process costing system.
process costing is a method mainly used in manufacturing where units are continuously mass product through one or more process.process costing is also a method of costing where the raw material passes through two or more processes before being converted into a final product.