ABKI347 - Product Costing and Variance Analysis Assessment 2 v3 2026 | The Career Academy NZ

Product Costing and Variance Analysis Assessment

Read the requirements below, then complete all parts of the assessment and then save your work as a Word Document or PDF file. Once you have saved your work click on the Assessment submission link within this topic and upload your completed assessment to your tutor for marking.

PART A Product & Process Costing

Question One

Explain the differences between job-order cost systems and process cost systems, with specific reference to tracking and applying costs.

Job order costing system is a costing system in which each product or job has traceable costs to individual jobs. Products are produced in distinct jobs /batches which are significantly different. Unit costs are calculated by dividing the total job cost by the number of units produced on that job. Examples of industries that use job order costing include furniture manufacturing, special-order printing, ship building, and many types of organizations such as lawyers and accountants. Job process costing is a costing system used in which a Product is mass produced, so costs are determined by equivalent units. Job process costing system is most commonly used in industries which convert raw materials into homogeneous (i.e., uniform) products, such as bricks cement or paper on a continuous basis. A form of process costing may be used in utilities that produce gas, water and electricity or in repetitive services. In job process costing system, production costs are traced to process/ department rather than jobs. Unit costs are calculated by dividing process costs for the period by the units produced in the period. 

Question Two

Shaping Tools Limited creates surfboards and wooden furniture. You have been asked to calculate the cost of ending work in process inventory for the surfboard division using the details provided below: