Cañete, Miel V.

OPM104_C

Determination of Products and Services

1. Nail Art
Job Order Costing
Nail art is a service provided by manicurist. The objective or the service is to style and
shape the clients’ nails. The styles and shapes varies depending on the client’s decision -
making it customizable, and service falls under the job order costing.

2. Waxing
Job Order Costing
Waxing is a service usually done by aestheticians. The job is modified to meet the
customer’s needs. The customer gets to choose what type of waxing s/he may get and for
how many session s/he will do waxing. The cost depends on the type of service s/he avail
and for how many repetitions, thus job order costing is used.

3. Commission Painting
Job Order Costing
Commission painting is a service by which an artist creates a work of art on a client's
invitation. This invitation comes in many shapes and forms, so most likely every client
receives a unique and different painting. The cost is based on the hours spent to finish
the art and the materials used, making it fit to use job order costing.

4. Legal Service
Job Order Costing
Legal service uses job order costing. Although this service uses less materials, the lawyer
will charge you for each hour (or portion of an hour) that the lawyer works on your case.

5. Soft Drinks
Process Costing
Soft drinks are continuously mass-produced through different processes such as
formulation and canning. Costs are allocated through different processes involve in
making the product. Therefore, it uses process costing, for it is the process that is costed.

6. Beers
Process Costing
It uses process costing. Similar with soft drinks, beers are produce in large volumes. It
undergoes different processes and stages which determines its cost before ending with a
final product.
Cañete, Miel V. OPM104_C

7. Disposable Masks
Process Costing
Disposable masks are produced by a standardized process in batches which means costs
cannot be easily traced back to the final product. Since disposable masks are made
identically and by batches so customization is unlikely. Therefore it uses process costing.

8. Smartphones
Process Costing
Smartphones are too made in batches and are unlikely to be customized to meet only the
expectations of a one specific customer so it uses process costing.

9. Shoes
Process Costing
It uses process costing. Similar with smartphones, shoes are not made individually for a
specific customer but rather by batches. Although there customizable shoes but one can
only avail such if they are affluent enough.

10. Medical Services

Job Order Costing
Patients are provided with different medical services depending on the situation and
condition they are in making the cost incurred by patients not uniform. So for this matter,
they use job order costing.