Explain the primary differences between job-order and process costing .

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Answer 1

Textbook Question

Chapter 4, Problem 1RQ

Explain the primary differences between job-order and process costing.

Expert Solution & Answer

To determine

Explain the primary difference between job-order costing and process costing.

Explanation of Solution

Job order costing: Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.

Process Costing: It is a method of cost accounting used by an enterprise with processes categorised by continuous production. The cost for manufacturing those products are assigned to the manufacturing department before the averaged over units are being produced.

Explain the primary difference between job-order costing and process costing.

Basis

Job order costing

Process costing system

Work-in-process inventory

Transfer of costs

Job order costing contains one work-in-progress inventory account, along with a subsidiary ledger having individual job cost reports for each job

Costs are transferred to finished goods inventory account once the jobs are completed under job order costing.

In process costing separate work-in-process inventory account for each department or process.

Costs are transferred at the end of the period to the subsequent department for additional processing and, for those products completed; costs are transferred to finishes goods inventory under process costing systems.

Table (1)

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Answer 2

Textbook Question

Chapter 4, Problem 1RQ

Explain the primary differences between job-order and process costing.

Expert Solution & Answer

To determine

Explain the primary difference between job-order costing and process costing.

Explanation of Solution

Job order costing: Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.

Process Costing: It is a method of cost accounting used by an enterprise with processes categorised by continuous production. The cost for manufacturing those products are assigned to the manufacturing department before the averaged over units are being produced.

Explain the primary difference between job-order costing and process costing.

Basis

Job order costing

Process costing system

Work-in-process inventory

Transfer of costs

Job order costing contains one work-in-progress inventory account, along with a subsidiary ledger having individual job cost reports for each job

Costs are transferred to finished goods inventory account once the jobs are completed under job order costing.

In process costing separate work-in-process inventory account for each department or process.

Costs are transferred at the end of the period to the subsequent department for additional processing and, for those products completed; costs are transferred to finishes goods inventory under process costing systems.

Table (1)

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Answer 3

Textbook Question

Chapter 4, Problem 1RQ

Explain the primary differences between job-order and process costing.

Expert Solution & Answer

To determine

Explain the primary difference between job-order costing and process costing.

Explanation of Solution

Job order costing: Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.

Process Costing: It is a method of cost accounting used by an enterprise with processes categorised by continuous production. The cost for manufacturing those products are assigned to the manufacturing department before the averaged over units are being produced.

Explain the primary difference between job-order costing and process costing.

Basis

Job order costing

Process costing system

Work-in-process inventory

Transfer of costs

Job order costing contains one work-in-progress inventory account, along with a subsidiary ledger having individual job cost reports for each job

Costs are transferred to finished goods inventory account once the jobs are completed under job order costing.

In process costing separate work-in-process inventory account for each department or process.

Costs are transferred at the end of the period to the subsequent department for additional processing and, for those products completed; costs are transferred to finishes goods inventory under process costing systems.

Table (1)

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Answer 4

Textbook Question

Chapter 4, Problem 1RQ

Explain the primary differences between job-order and process costing.

Expert Solution & Answer

To determine

Explain the primary difference between job-order costing and process costing.

Explanation of Solution

Job order costing: Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.

Process Costing: It is a method of cost accounting used by an enterprise with processes categorised by continuous production. The cost for manufacturing those products are assigned to the manufacturing department before the averaged over units are being produced.

Explain the primary difference between job-order costing and process costing.

Basis

Job order costing

Process costing system

Work-in-process inventory

Transfer of costs

Job order costing contains one work-in-progress inventory account, along with a subsidiary ledger having individual job cost reports for each job

Costs are transferred to finished goods inventory account once the jobs are completed under job order costing.

In process costing separate work-in-process inventory account for each department or process.

Costs are transferred at the end of the period to the subsequent department for additional processing and, for those products completed; costs are transferred to finishes goods inventory under process costing systems.

Table (1)

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Explain the primary difference between job-order costing and process costing.

Explanation of Solution

Job order costing: Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.

Process Costing: It is a method of cost accounting used by an enterprise with processes categorised by continuous production. The cost for manufacturing those products are assigned to the manufacturing department before the averaged over units are being produced.

Explain the primary difference between job-order costing and process costing.

Basis

Job order costing

Process costing system

Work-in-process inventory

Transfer of costs

Job order costing contains one work-in-progress inventory account, along with a subsidiary ledger having individual job cost reports for each job

Costs are transferred to finished goods inventory account once the jobs are completed under job order costing.

In process costing separate work-in-process inventory account for each department or process.

Costs are transferred at the end of the period to the subsequent department for additional processing and, for those products completed; costs are transferred to finishes goods inventory under process costing systems.

Table (1)

Answer 8

Expert Solution & Answer

To determine

Explain the primary difference between job-order costing and process costing.

Explanation of Solution

Job order costing: Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.

Process Costing: It is a method of cost accounting used by an enterprise with processes categorised by continuous production. The cost for manufacturing those products are assigned to the manufacturing department before the averaged over units are being produced.

Explain the primary difference between job-order costing and process costing.

Basis

Job order costing

Process costing system

Work-in-process inventory

Transfer of costs

Job order costing contains one work-in-progress inventory account, along with a subsidiary ledger having individual job cost reports for each job

Costs are transferred to finished goods inventory account once the jobs are completed under job order costing.

In process costing separate work-in-process inventory account for each department or process.

Costs are transferred at the end of the period to the subsequent department for additional processing and, for those products completed; costs are transferred to finishes goods inventory under process costing systems.

Table (1)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Explain the primary difference between job-order costing and process costing.

Answer 12

Explanation of Solution

Job order costing: Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other.

Process Costing: It is a method of cost accounting used by an enterprise with processes categorised by continuous production. The cost for manufacturing those products are assigned to the manufacturing department before the averaged over units are being produced.

Explain the primary difference between job-order costing and process costing.

Basis

Job order costing

Process costing system

Work-in-process inventory

Transfer of costs

Job order costing contains one work-in-progress inventory account, along with a subsidiary ledger having individual job cost reports for each job

Costs are transferred to finished goods inventory account once the jobs are completed under job order costing.

In process costing separate work-in-process inventory account for each department or process.

Costs are transferred at the end of the period to the subsequent department for additional processing and, for those products completed; costs are transferred to finishes goods inventory under process costing systems.

Table (1)

Answer 13

Ch. 4 - Explain the primary differences between job-order...Ch. 4 - List five types of manufacturing in which process...Ch. 4 - Prob. 3RQ Ch. 4 - What are the purposes of a product-costing system?Ch. 4 - Define the term equivalent unit and explain how...Ch. 4 - List and briefly describe the purpose of each of...Ch. 4 - Show how to prepare a journal entry to enter...Ch. 4 - Prob. 8RQ Ch. 4 - Prob. 9RQ Ch. 4 - Prob. 10RQ

Explain the primary differences between job-order and process costing .

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