Job order costing meaning, Examples of Job Order Costing, Process costing, Examples of Process costing Job order costing vs process costing

1. Job order costing
VS
Process costing
ANKON
ROY

2. JOB ORDER COSTING
Job order costing is a
costing method which is
used to determine the
cost of manufacturing
each product.

3. EXAMPLES OF JOB ORDER
COSTING
A company that designs
and produces custom-
made machines and/or
machine tooling. A
company that constructs
custom-designed
buildings. A company
that modifies trucks to
meet customers' special
needs.

4. PROCESS COSTING
A method of
costing used
mainly in
manufacturing
where units are
continuously mass-
produced through
one or more
processes.

5. 5 STEPS FOR PROCESS COSTING
Analyze
inventory flow.
Convert in-
process
inventory to
equivalent
units.
Compute all
applicable
costs.
Calculate the
cost per unit of
finished and
in-process
inventory.
Allocate costs
to units of
finished and
in-process
inventory.