Read:
Chapters 19 and 20 of the textbook (Walther, L.M. (2012). Principles of Accounting. Logan, UT: Utah State University. Available at http://www.principlesofaccounting.com/)
For the Discussion Post:
Alaska Rocket Launch, a private-sector aerospace company, provided the following aggregated data for satellite jobs during the FY20XX period:
Direct materials $13,442,769
Direct labor 21,889,554
Applied (and actual) factory overhead 8,223,454
Beginning work in process 14,550,098
Ending work in process 17,559,000
Satellites are usually constructed to specific customer specifications, and the contract selling price is 125% of the cost.
Assuming that the above costs are attributable to several different satellites in various stages of production, how would the cost of direct materials, direct labor, and overhead be tracked to specific jobs?
How important is the job costing system in establishing a fair selling price for each satellite?
Don’t forget to show your work for calculations.
Be sure to use in-text citation and provide references for your sources, including textbooks.
