Parker Company Manufactures Custom-Built Conveyor Systems for Factory and Commercial

question 19

Essay

Parker Company manufactures custom-built conveyor systems for factory and commercial operations. Susan Jones is the cost accountant for Parker Company and she is in the process of educating a new employee, Terry Smith about the job-order costing system that Parker Company uses. (The system is based on normal costs; overhead is applied based on direct labor cost and rounded to the next whole dollar.) The following job-order cost records are available for July:
To explain the missing job number, Susan informed Terry that Job #668 had been completed in June. She also told her that Job #667 was the only job in process at the beginning of July. At that time, the job had been assigned $4,300 for direct material and $900 for direct labor. At the end of July, Job #671 had not been completed; all others had. Terry asked Susan several questions to determine whether she understood the job-order system.
Required: Help Susan answer the following questions:

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Definitions:

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Kodak

A technology company that historically dominated the photographic film industry but struggled to adapt to the digital photography revolution.

Diversified Market

A market strategy that involves a company extending its reach into several different lines of business in an effort to reduce risk.

All-benefits Approach

A marketing strategy that emphasizes communicating all the benefits of a product or service to potential customers to influence their purchasing decision.