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Discussion Question
1. Explain the job order costing income statement and provide a hypothetical example of job order costing income statement in a manufacturing enterprise. Provide in-text citations and explain your example in detail.
2. Explain the activity-based costing income statement and provide a hypothetical example of activity-based costing income statement in a manufacturing enterprise. Provide in-text citations and explain your example in detail.
Activity
Prepare income statements in both job order costing and activity-based costing formats for a hypothetical case. Your example should include at least three activities and at least two products. If you do both correctly the operating income in both statements should be identical.
Explain the initial assumptions and the calculations in detail. Provide in-text citations.
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