You are a management accountant.
a) Choose one product that is manufactured using job order costing at your company. Provide a brief description of the product and its production process.
b) Identify and describe the different cost elements involved in the production of the chosen product. Include direct materials, direct labor, and manufacturing overhead costs.
c) Select a specific job for the chosen product and calculate the total cost for that job using the appropriate cost elements identified in part b. Use the following information:
• Direct materials cost: $5,000
• Direct labor cost: $3,000
• Manufacturing overhead rate: 150% of direct labor cost
d) Discuss the advantages and limitations of job order costing for your company.
How does it help in providing accurate cost information for each specific job?