Chapter 4 - Cost Accounting - JKBaker(1) - Job Costing...

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College Accounting, Chapters 1-27
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Chapter 26 / Exercise 13
College Accounting, Chapters 1-27
Heintz/Parry
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J. Keith Baker © 2015Job CostingChapter 4ACCT 3270Fall –2015Jay K. Baker,MSFS, MBA, CPA, CFP®
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
College Accounting, Chapters 1-27
The document you are viewing contains questions related to this textbook.
Chapter 26 / Exercise 13
College Accounting, Chapters 1-27
Heintz/Parry
Expert Verified
Defining a JobLO 4-1Describe the building-block conceptsof costing systems.
J. Keith Baker © 2013Basic Costing Terminology…Several key points from prior chapters:Cost objects—including responsibility centers, departments, customers, products, and so onDirect costs and tracing—materials and laborIndirect costs and allocation—overhead
J. Keith Baker © 2013
J. Keith Baker © 2013Costing SystemsJob-costing—system accounting for distinct cost objects called jobs. Each job may be different from the next, and consumes different resources.Wedding announcements, aircraft, advertisingProcess-costing—system accounting for mass production of identical or similar products.Oil refining, orange juice, soda popLO 4- 2Distinguish job costing from process costing.
J. Keith Baker © 2013Costing Systems Illustrated
J. Keith Baker © 2013Costing Approaches
LO 4- 3Describe the approaches to evaluating and\implementing job-costing systems.
J. Keith Baker © 2013Costing Approaches Summarized
J. Keith Baker © 2013Seven-Step Job Costing1.Identify the job that is the chosen cost object.2.Identify the direct costs of the job.3.Select the cost-allocation base(s) to use for allocating indirect costs to the job.4.Match indirect costs to their respective cost-allocation base(s).LO 4- 4Outline the seven-step approach to normal costing.
J. Keith Baker © 2013Seven-Step Job Costing

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