The following examples briefly describe the manufacture of two different product

Question

The following examples briefly describe the manufacture of two different products. Which costing method (job-order or process) would be the best method to use for each project?

I. Steven Lawless manufactures Lawless Fine Wine Coolers. Steven once made the statement, "People can have any flavor of Lawless Fine Wine Coolers they want as long it's strawberry."
II. Northridge Spacetronics is manufacturing three space shuttles for the country of Xanadu. Each shuttle is slightly different and production will last approximately two years.

Explanation / Answer

I. As it is the manufacturing of coolers as it Job-Order as each order can be done when received and Job-Order allows to monitor and gives the exact cost to build a cooler.

II. Similarly, even in Space shutters, it is needed to manufacture and assemble each unit and here also we need exact cost for each shutter and hence the Job-Order makes the best suitable approach here also.

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