Question

The three types of manufacturing costs in a job order costing system include:

Multiple select question.
a)direct labor
b)finished goods
c)direct materials
d)work in process
e)overhead

Answer 1

The three types of manufacturing costs in a job order costing system include direct labor, direct materials, and overhead.

Step-by-step explanation:

The three types of manufacturing costs in a job order costing system are:

1. Direct labor: This refers to the wages and salaries of employees directly involved in the production process. For example, the wages of assembly line workers in a car manufacturing company.
2. Direct materials: These are the raw materials or components that are directly used in the production of a product. For example, the steel used to make car bodies.
3. Overhead: Overhead costs include all other costs that are not directly tied to specific products, such as rent, utilities, and factory maintenance.

These three types of costs are important in determining the overall cost of manufacturing a product and are used in job order costing systems to allocate costs to specific jobs or products.