Chapter 4 very briefly returns to the topic of job order costing, focusing specifically on cost flows. The Chapter then introduces us to the process costing method and begins to compare the two method

Chapter 4 very briefly returns to the topic of job order costing, focusing specifically on cost flows. The Chapter then introduces us to the process costing method and begins to compare the two methods and discuss the reasons why one method might be used rather than the other. Additional inventory accounts are discussed in order to describe how cost data is captured during certain manufacturing situations. Finally, an important management tool, the production cost report is introduced.

Part 1

What types of companies use job order costing? Please provide at least two examples. What types of companies would use process costing? Please provide another two examples. What are the similarities between job order costing and process costing? What are the differences?You are encouraged to research outside sources and, of course, cite them. Do not, however, quote sources word-for-word, but rather, respond to the Discussion  in your own words. Minimum words is 250.

Part 2

Problem 22 (Chapter 4). Calculating Equivalent Units.

Complete the requirements for each item in the following.

Part 1. A university has 500 students enrolled in classes. Each student attends school on a part-time basis. On average, each student takes three-quarters of a full load of classes. Calculate the number of full-time equivalent students (i.e., calculate the number of equivalent units).

 Answer template:

[___] full-time equivalent students = [__] students x [__]% of full load

Part 2. A total of 10,000 units of product remain in the Assembly department at the end of the year. Direct materials are 80 percent complete and direct labor is 40 percent complete. Calculate the equivalent units in the Assembly department for direct materials and direct labor.

 Answer template:

[____] direct materials equivalent units = [____] physical units x [____]% complete

 [____] direct labor equivalent units = [____] physical units x [____]% complete

Part 3. A local hospital has 60 nurses working on a part-time basis. On average, each nurse works two-thirds of a full load. Calculate the number of full-time equivalent nurses (i.e., calculate the number of equivalent units).

Answer template:

[____] full-time equivalent nurses = [____] nurses x [____] of full time

Part 4. A total of 6,000 units of product remain in the Quality Testing department at the end of the year. Direct materials are 75 percent complete and direct labor is 20 percent complete. Calculate the equivalent units in the Quality Testing department for direct materials and direct labor.

Answer template:

[____] direct material equivalent units = [____] physical units x [____]% complete

[____] direct labor equivalent units = [____] physical units x [____]% complete

Part 3

For this week’s reflection, please write three complete and well composed paragraphs where you use, as an example, a company that operates in Grenada west indies and describe how process costing would help the business owners manage their business.

Cite any references in apa format.