Concept explainers
Jobs and job lots C1
Determine which of the following are most likely to be considered as a job and which as a job lot.
_____l. Hats imprinted with company logo
_____2. Little League trophies
_____3. A handcrafted table
_____4. A 90-foot motor yacht
_____5. Wedding dresses for a chain of stores
_____6. A custom-designed home
Introduction:
In manufacturing process when a particular product is manufactured for a specific customer order, is called a job.
Similarly when product is manufactured for a customer or a group of customer based on a custom
Order, these custom orders are called job lots.
Which of the following are most likely to be considered as a job and which as a job lot.
Answer to Problem 1QS
Solution:
- Job lot
- Job lot
- Job
- Job
- Job lot
- Job
Given Information:
- Hats Imprinted with company logo.
- Little League trophies.
- A handcrafted table.
- A 90-foot motor yacht.
- Wedding dresses for a chain of stores.
- A custom-designed home.
Explanation of Solution
From the above discussion it has been concluded that, for a specific customer order it is called job and for a group of customer based on a custom order is called job lot.
Further,
- In question no 1,2 &5, there is a indication of many job orders like Hats imprinted, trophies & wedding dress. So all these are treated as Job Lot.
- Similarly in question no 3, 4 &6, it is indicated that only one customer order is placed like A handcrafted table, A 90 foot yacht & A custom-designed home. So all these are treated as Job.
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Chapter 19 Solutions
Fundamental Accounting Principles
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