Chapter 19, Problem 5BTN

Refer to the chapter opener regarding Brennan Agranoff and his company, Hoop Sivagg. All successful businesses track their costs, and it is especially important for start-up businesses to monitor and control costs.

Required

1. Assume that Brennan Agranoff uses ajob order costing system. For the basic cost category of direct materials, explain how Brennan's job cost sheet would differ from a job cost sheet for a service company.
2. For the basic cost categories of direct materials, direct labor, and overhead, provide examples of the types of costs that would fall into each category for Hoop Swagg.