Job Costing Methods

Introduction: This assignment will help you learn how job costing is used by manufacturing companies to assign and manage costs. You will become familiar with terms such as cost drivers, raw materials, work in process, finished goods, and overhead costs. After completing this assignment, you will have a greater understanding of how costs are assigned in a company that uses job costing.

Tasks:

Refer to the manufacturing company that you selected for this week’s discussion question. Visit the company’s Web site to familiarize yourself with the products they produce.

Prepare a one- to two-page paper briefly discussing how the company uses job costing to record the costs of manufacturing their main product. In the paper, address the following points:

What are the products produced? Discuss why you believe the company uses the job costing method for their products.

What do you think the cost drivers for the job costing method are?

Discuss the procedure for the costs from when the company decides to make the product until it is shipped to the customer.

Discuss the journal entries needed to record costs at each step of the job. You do not need to know transaction amounts; just discuss the affected journal accounts.

Discuss how you think the company would allocate their overhead expenses. You do not need to know how the company actually records their overhead. Discuss what you think the best way would be for it to be recorded.

Deliverables and Format:

Submit your answer as a Word document.

Font: Arial: 12-point

Line Spacing: Double

Minimum length: Two pages

Use additional references from the DWC Virtual Library other than your textbook to support the main points in your paper.

Avoid the overuse of direct quotes. Instead, paraphrase with proper citations in your own words to answer the questions and concepts.

Remember to use proper citations and references in APA format (6th edition).