Job order costing or job costing is a system for assigning manufacturing costs to an

individual product or batches of products. On the other hand, process costing is a

term used in cost accounting to describe one method for collecting and assigning
manufacturing costs to the units produced.
The choice of costing method depends upon the nature of the product or service
being produced by the company. If the ordered product is heterogeneous
(customized/specific) then job order costing is preferred and if the product is
homogeneous in nature like in mass production then process costing is used to
allocate the costs.
Example of job order costing would be service companies like Telecommunication
Company like AT&T offering customized services like internet, calling, messaging
etc. Example of a process costing company would be Beverage Company like
Arizona supplying similar bottles of juice.

Requirement 1: Jean Jackson estimated that the units in ending inventory in the final
processing department were 25% complete with respect to the conversion costs of
the final processing department. If this estimate of the percentage completion is
used, what would be the cost of goods sold for the year?
Solution:
Units in ending inventory = 270,000 250,000 = 20,000
As no materials are added in the present department, thus the material cost of
ending inventory per unit = 49,221,000/270,000 = $182.3
Total material cost for ending inventory in final processing department = 20,000 x
182.3 = $3,646,000
Ending inventory with respect to conversion = 20,000 x 25% = 5,000
Thus the conversion cost per unit incurred in the final processing department =
16,320,000/(250,000+5000) = $64
Total conversion cost for ending inventory = 5000 x 64 = $320,000
Total cost of ending inventory in final processing department = 3,646,000 +
320,000 = $3,966,000
Cost of goods sold = Cost of beginning inventory in finished goods + Cost of
Transferred In goods from previous department + Conversion cost incurred in the
present department Cost of ending inventory in finished goods
COGS = 0 + 49,221,000 + 16,320,000 3,966,000
= $61,575,000
The above value is the cost of goods sold i.e. 250,000 units.

Hopefully its correct.