This document lists different types of businesses and whether they would use process costing or job-order costing. Process costing is used by businesses that manufacture homogeneous products on a continuous basis like a glue factory, oil refinery, orange juice manufacturer, and paper mill. Job-order costing is used by businesses that produce unique products in small batches like a textbook publisher, custom home builder, van customizer, auto repair shop, advertising agency, and law office. Some businesses like a chemical manufacturer and tire plant could use elements of both methods.
This document lists different types of businesses and whether they would use process costing or job-order costing. Process costing is used by businesses that manufacture homogeneous products on a continuous basis like a glue factory, oil refinery, orange juice manufacturer, and paper mill. Job-order costing is used by businesses that produce unique products in small batches like a textbook publisher, custom home builder, van customizer, auto repair shop, advertising agency, and law office. Some businesses like a chemical manufacturer and tire plant could use elements of both methods.
This document lists different types of businesses and whether they would use process costing or job-order costing. Process costing is used by businesses that manufacture homogeneous products on a continuous basis like a glue factory, oil refinery, orange juice manufacturer, and paper mill. Job-order costing is used by businesses that produce unique products in small batches like a textbook publisher, custom home builder, van customizer, auto repair shop, advertising agency, and law office. Some businesses like a chemical manufacturer and tire plant could use elements of both methods.
EXERCISE 8-1: Process Costing and Job Order Costing
a) An Elmer's glue factory Process Costing
b) A textbook publisher such as McGraw-Hill Job-Order Costing c) An Exxon oil refinery Process Costing d) A facility that makes Minute Maid Frozen orange juice Process Costing e) A scott paper mill Process Costing f) A custom home builder Job-Order Costing g) A shop that customizes vans Job-Order Costing h) A manufacturer of specialty chemicals Job-Order/Process Costing i) An auto repair shop Job-Order Costing j) A Firestone tire manufacturing plant Job-Order/Process Costing k) An advertising agency Job-Order Costing l) A law office Job-Order Costing