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Job Costing at Dell Computer

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Job Costing at Dell Computer
Paper instructions:
Job Costing at Dell Computer

Upon completion of the Required Readings, write a thorough, well-planned narrative answer to the following discussion question. Rely on your Required Readings and the Lecture and Research Update for specific information to answer the discussion question, but turn to your original thoughts when asked to apply, evaluate, analyze, or synthesize the information. Your Discussion Question responses should be both grammatically and mechanically correct and formatted in the same fashion as the questions themselves. In addition, you must appropriately cite all resources used in your responses and document them in a bibliography using APA style.

The Enriquez Machine Parts Company Case in Chapter 13 (pp. 530-539) illustrates the use of a job-order costing system. Review the sources documents, the flow of costs (Exhibit 13-2, p. 531), the analysis of transactions, and the accounting for factory overhead, including budgeted overhead application rates and the disposition of under- and over-applied overhead for an understanding of a job-order costing system.

The Assignment
Complete Problem 13-37 listed below on the job-costing system at Dell Computer. Supplement the requirements for this problem by visiting Dell Computer’s Web site ( for additional information about this company’s products and cost management system to help you respond to the questions. In addition, answer the question “What is a “job” at Dell Computer?” (25 points) (A 1½-page response is required.)

Problem 13-37 Job Costing at Dell Computer
Dell Computer Corporation’s manufacturing process at its Austin, Texas facility consists of assembly, functional testing, and quality control of the company’s computer systems. The company’s build-to-order manufacturing process is designed to allow the company to quickly produce customized computer systems. For example, the company contracts with various suppliers to manufacture reconfigured base Latitude notebook computers and then Dell customizes these systems for shipment to customers. Quality control is maintained through the testing of components, parts, and sub-assemblies at various stages in the manufacturing process.

The Required Assignment:
Describe how Dell might set up a job-costing system to determine the costs of its computers. What is a “job” to Dell? How might the costs of components, assembly, testing, and quality control be allocated to each “job”?

Reference Textbook
Horngren, C. T., Sundem, G. L., & Stratton, W. O. (2002).Introduction to Management Accounting, (12th ed.). NJ: Prentice Hall; Chs. 13-14, pp. 526-587.

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