Job Order Costing in a Service Organization

Peruga Engineering Company needs to analyze its jobs in process during the month of January.

Required

1.Using Excel’s Chart Wizard and the job order cost cards that you created for Jobs P-12, P-15, and P-19, prepare a bar chart that compares the bid and proposal costs, design costs, and prototype development costs of the jobs. The suggested format to use for the information table necessary to complete the bar chart is as follows:

1

P-12

P-15

P-19

2

Bid and Proposal

3

Design

4

Prototype Development

5

Total Job Cost

2.Examine the chart you prepared in requirement 1. List some reasons for the differences between the costs of the various jobs.