Turkey Hill

Definition

Turkey Hill is a company that manufactures and sells ice cream, frozen yogurt, and beverages. They use job order costing to track production costs for each batch of products.

5 Must Know Facts For Your Next Test

1. Turkey Hill uses job order costing to assign costs to individual batches or jobs of ice cream.
2. Direct materials, direct labor, and manufacturing overhead are tracked separately for each job at Turkey Hill.
3. Unlike process costing, job order costing allows Turkey Hill to determine the cost of each specific batch of product.
4. Job cost sheets are essential documents used by Turkey Hill to accumulate costs associated with each job.
5. Turkey Hill's pricing strategy may be influenced by the detailed cost information provided through job order costing.

Review Questions

• How does Turkey Hill benefit from using job order costing compared to process costing?
• What types of costs are tracked separately in Turkey Hill's job order costing system?
• Why might accurate job cost sheets be important for Turkey Hill?

Related terms

Job Cost Sheet:

A document that records all the costs associated with a specific job in a job order costing system

Direct Materials:

Raw materials that can be directly traced to a specific product or job

Manufacturing Overhead:

Indirect factory-related costs that are incurred when manufacturing a product