Discuss cost concepts used in manufacturing accounting. Be sure to address the basic product cost components.

Responses

In need of a 125 response/discussion to EACH of the following forum posts. There are (2) different Forum posts. Agreement/disagreement/and/or continuing the discussion. The two interactive posts should each be substantial, relevant, and engaging. Replies to classmates should include direct questions. In-text citations and references may be in APA format. Original forums discussion/topic post is as follows: (Use/Cite references to support your ideas)

Job Costing

Chapter 18 of the attached textbook have been used this week.

FORUM POST 1: Discuss cost concepts used in manufacturing accounting. Be sure to address the basic product cost components.

Hello everyone,

For this week’s forum, we will be discussing job costing. Better known as the job cost system, this system accrues costs that are sustained by individual jobs at a company. Job costing is used when a business provides a certain good to appease a customer’s desires or to recognize a certain product. For example, a clinic or a law firm may use this system to evaluate the cost of the clients they receive or the patients they work on. It is essential to use job costing in companies that offer goods or services that are completely dependent on what the customers actually want. There are 3 components to job costing: manufacturing overhead, direct labor costs, and direct material costs.

Manufacturing overhead is the component that consists of all costs associated with the cost of producing a product besides material and labor. Direct labor cost consists of costs that are specific to the product. Direct material costs consist of the cost that comes with buying raw materials that will be used to create the product.

FORUM POST 2:Discuss cost concepts used in manufacturing accounting. Be sure to address the basic product cost components.

Good Evening

Cost concepts in manufacturing are the costs incurred from turning raw materials into a product. These can vary based on the type of product but they fall into three categories.

Direct Labor

Direct Materials

Manufacturing overhead

Direct labor- is Consists of gross wages paid to those who physically and directly work on the goods being produced. ( An example of this is the salary or wages paid to the individual who works in a plastic bag factory producing plastic bags. It is anyone who helps create the product.

Direct Materials- This is the cost of the materials which become part of the finished product if a company pays one hundred dollars to purchase wood to build shelves this is the direct material. Direct materials are the costs when buying the items needed to create product.

Manfufacturing overhead- “factory overhead refers to all other costs incurred in the manufacturing activity which cannot be directtly traced to physical units in an economically feasible way.

Subject: Accounting

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