The difference between job costing and process costing

Dr. Thanasak Ruankaew

Part 1 Contribution Margin/Breakeven

PV of Annuity Table

Purchase of new equipment	$ 250,000.00	n	1%	2%	3%	4%	5%	6%	8%	10%
Expected annual increase in sales	$	1		0.9804	0.9709	0.9615	0.9524	0.9434	0.9259	0.9091
Time frame	7 years	2	1.9704	1.9416	1.9135	1.8861	1.8594	1.8334	1.7833	1.7355	1.6906
Acceptable rate needed	9%	3	2.941	2.8839	2.8286	2.7751	2.7233	2.673	2.5771	2.4869
Calculate the Internal Rate of Return:	5.206	3	2.941	2.8839	2.8286	2.7751	2.7233	2.673	2.5771	2.4869
		4	3.902	3.8077	3.7171	3.6299	3.546	3.4651	3.3121	3.1699
		5		4.7135	4.5797	4.4518	4.3295	4.2124	3.9927	3.7908
PV of annuity factor		6	5.7955	5.6014	5.4172	5.2421	5.0757	4.9173	4.6229	4.3553	4.1114
Internal rate of return	8%	7		6.472	6.2303	6.0021	5.7864	5.5824	5.2064	4.8684
Accept or reject		8		7.3255	7.0197	6.7327	6.4632	6.2098	5.7466	5.3349	4.9676
		9	8.566	8.1622	7.7861	7.4353	7.1078	6.8017	6.2469	5.759	5.3283
		10		8.9826	8.5302	8.1109	7.7217	7.3601	6.7101	6.1446
		11 10.3676		9.7869	9.2526	8.7605	8.3064	7.8869	7.139	6.4951
					9.954	9.3851	8.8633	8.3838	7.5361	6.8137	6.1944
		13 12.1337 11.3484			10.635	9.9857	9.3936	8.8527	7.9038	7.1034
							9.8986	9.295	8.2442	7.3667
					11.938 11.1184 10.3797			9.7123	8.5595	7.6061	6.8109

Month following the sale 20%

Estimated cash receipts

Part 6 Material and Labor Variance Cookie Business

Actual Cost of Direct Materials	$
Standard Cost of Direct Materials	$
Actual Materials Used	$
Standard Materials Used
Actual Direct Labor Rate		15.50
Standard Labor Rate	$	15.00
Actual Hours Worked
Standard Hours Worked

Calculate Materials Variances:

Labor Rate Variance	$	(23)
Labor Effi ciency Variance	$	(75)

Conclusions and Recommendations

 Jiambalvo, J. (2019). Managerial accounting (6th ed.). Hoboken, NJ: Wiley.

 Delaney, P, Whittington, O. (2011). Wiley CPA Exam Review: Business Environment and Concepts (8th ed.). Hoboken, NJ: Wiley
All graphics used under free license from pixabay.com