In job order cost accounting, the three elements of manufacturing cost are charged directly to job orders. Why is it not necessary to charge manufacturing costs in process cost accounti
Be sure that you are putting some thought into your discussion 150-200 words. Please answer the following 4 questions:
1. In job order cost accounting, the three elements of manufacturing cost are charged directly to job orders. Why is it not necessary to charge manufacturing costs in process cost accounting for job orders?
2. In a job order cost system, direct labor and factory overhead applied are debited to individual jobs. How are these items treated in a process cost system and why?
3. Why is the cost per equivalent unit often determined separately for direct materials and conversion costs?
4. What is the purpose for determining the cost per equivalent unit?
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