Acc225 Fundamental Accounting Principles: Serial Problem 20 (SP20) Santana Rey (Job Order Costing)
Acc225 Fundamental Accounting Principles Serial Problem 20 (SP20) The computer workstation furniture manufacturing that Santana Rey started is progressing well. At this point, Santana is using a job order costing system to account for production costs of this product line. Santana heard about process costing and is wondering whether process costing might be a better method for her to keep track of and monitor her production costs.
1. What are the features that distinguish job order costing from process costing?
2. Do you believe that Santana should continue to use job order costing or switch to process costing for her workstation furniture manufacturing? Explain.