ob Order Costing, Determining Costs
In order to remain competitive, companies determine the competitorâ€s product costs. Spyglass Inc. creates various types of industrial glass products.
The company states that these are the costs they have incurred with regards to Batch 27A: Customer order quantity 500,000 for July:
Raw materials: $2,000
Molds: $.40
Labor: $10.00 per hr.
Containers: $2.59
Promotion: $1.00
Marketing: $0.20
Manufacturing overhead: $800.00
Checklist:
What type of costs will be involved in this job order? Why?
What type of costs would be included in the manufacturing overhead per product?
What costs would be period costs?
Reference
Weygandt, J., Kimmel, P. & Kieso, D. (2015). Accounting principles (12th ed.). Hoboken, NJ: John Wiley & Sons, Inc.
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