Costing. System of costing. Accounting, Finance, SPSS Assignment. (Essay Sample)

Costing
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Institution
Costing
Job order is a system that assigns manufacturing costs to a batch of products or one unit of a product. This system of costing is most preferable when the hoods produced are mostly different from others. Hence, when the products are different, this system will form a job cost record for the entire individual item produced. Furthermore, the job order record will show the direct labor and the direct material used and an addition of the manufacturing overhead costs is also assigned to each job. Hence, the job order costing system is used by various industries to calculate and assign costs to different units of production.
1 To compute the departmental overhead costs, one is required to divide the overhead costs by the machine hours. For instance;
Radiator parts fabrication- $80,000 divided by 10,000
= $8.0A departmental overhead costs of $8.0 will be necessary in the department of Radiator parts fabrication.
Radiator assembly, weld, and test- $100,000 divided by 20,000
= $5.0A departmental overhead costs of $5.0 will be required in production in the radiator assembly, weld, and test.
Compressor parts fabrication- $120,000 divided by 5,000
= $24.0The department of compressor parts fabrication will need the overhead cost of $24.0 to fully function
Compressor assembly, weld, and test- $180,000 divided by 40,000