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Job vs. Process Costing
Product (service) costing systems are customized to provide
accurate and timely
cost data. A company should select a costing system that is
appropriate for its
production process. The following is a list of different organizations
and selected
products or services they provide. Indicate whether each of the
preceding
organizations would most likely choose job costing or process
costing.
Job Costing
Love’s Pottery Barn had the following costs for June:
Direct Labor
$400
Manufacturing Overhead
$375
Beginning work in process
$0
Ending work in process
$0