Question

In a 1–2-page Microsoft Word document, compare and contrast how job order and process cost accounting systems differ for each of the following items:

Materials.

Labor.

Factory overhead.

Be specific, providing examples as needed, and follow APA style for citations and references. Use 12-point font and double space your paper.

Answer 1

Solution

Basis   

Material in job costing, customised material is used to complete that particular job order. In case of process costing, standard material is used to complete that processp.

Labour in job costing, different personnel may be assigned to a particular jobjon the basis of their expertise and skills and availability. In case of process costing, casual or permanent labour is hired for the process which will be used for that process .

Factory overhead InIjob costing, cost which is incurred on that particular job shall be taken in consideration for that particular job. In process costing, the total overhead shall be distributed among the various processes.