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Q1. What types of companies use job costing? How are overhead allocation rates determined by these companies? Explain and analyze your answer by providing examples of two Saudi companies that use job costing.
Q2. Axel Ltd. uses a process costing system for its sole processing department. There were 16,000 units in beginning WIP inventory for March and 144,000 units were started in March. The beginning WIP units were 70% complete and the 13,000 units in ending WIP were 50% complete. All materials are added at the start of processing.
Required:
a) Compute the no. of units started

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