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Difference between job costing and process costing pdf

25/10/2021 Client: muhammad11 Deadline: 2 Day

In this week's discussion, I will discuss the similarities and differences in Job Order and Process Costing

Similarities: Both job-order costing and process costing maintain the costs of direct material, direct labor, and manufacturing overhead. The process of production does not change because of the costing method. The costing method is chosen based on the production process. In job order cost production, the cost can be directly traced to the job, and the job cost sheet contains the total expenses for that job. Process costing is optimal when the costs cannot be traced directly to the job.

Differences: Job Order

• product costs are traced to the product and recorded on each job's individual job cost sheet. • cost sheet. As each job moves so does the job cost sheet. • finished goods include the products-completed, but not sold, and all incomplete jobs are work in process

inventory. Process Costing

• product costs are traced to departments or processes. • each department tracks its expenses , the number of units started or transferred in, and the number of units

transferred to the next department. • finished goods inventory is the number of units completed at the per-unit costs. Work in process inventory is

the cost per unit and the equivalent units remaining to be completed. Source: https://www.accountingtools.com/articles/what-is-the-difference-between-job-costing-and-process- costi.html

https://www.accountingtools.com/articles/what-is-the-difference-between-job-costing-and-process-costi.html
https://www.accountingtools.com/articles/what-is-the-difference-between-job-costing-and-process-costi.html

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