Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 6

Decision making with job order costs
Alvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost information from the job sheets to assess cost performance. Information on the total cost, product type, and quantity of items produced is as follows:

a. Develop a graph for each product (three graphs), with Job Number (in date order) on the horizontal axis and Unit Cost on the vertical axis. Use this information to determine Alvarez Manufacturing Inc.'s cost performance over time for the three products.
b. What additional information would you require in order to investigate Alvarez Manufacturing Inc.'s cost performance more precisely