- Product Costs
In Chapter 3, you were introduced to three types of costs associated with a manufactured product – direct materials, direct labor, and manufacturing overhead. Explain how these costs are associated with the manufactured product. Why are some of these costs allocated to the product through costing methods such as job order costing or process costing? As part of your response, please read the article First Solar preview: Manufacturing costs, project order book in the spotlight and provide a specific example of this company’s manufacturing costs. Your initial post should be 200-250 words. Respond to at least two of your classmates’ posts.
Review several of your classmates’ postings. Respond to at least two of your classmates by explaining why you agree or disagree with their explanations. Provide examples to clarify and support your point of view.
- Job Order Costing vs. Process Costing
Explain the similarities and differences between job order costing and process costing. In your explanation, provide examples of when job order costing and process costing would be most appropriate. Your initial post should be 200 to 250 words.
Review several of your classmates’ postings and consider the examples they’ve shared of the appropriate use of job order costing and process costing. Respond to at least two of your classmates by sharing professional experiences you’ve had with these costing methods or by adding an additional example to expand thinking.
Schneider, (2012). Managerial accounting: Decision making for the service and manufacturing sectors. (2012). San Diego, CA: Bridgepoint Education.
- Chapter 3: Product Costing: Attaching Costs to Products and Services.
- Chapter 4: Process Costing.
Trefis Team. (2014, February 24). First Solar preview: Manufacturing costs, project order book in the spotlight. Forbes. Retrieved from http://www.forbes.com/sites/greatspeculations/2014/02/24/first-solar-preview-manufacturing-costs-project-order-book-in-the-spotlight/