Chapter 3 - Systems Design: Job-Order Costing Chapter Three...

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    1. Accounting 2102 Chapter Three Systems Design:  Job-Order Costing
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    2 Accounting 2102 Types of Product Costing Systems Process Costing (Chapter 4) •Produces many units of single homogenous product •Assign same average cost per unit . . . cost object is? Coca-cola Job Order Costing (Chapter 3) •Products are manufactured “to order” •Trace/allocate costs to each job . . . cost object is? McDonalds
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    3 Accounting 2102 Manufacturing Overhead Job No. 1 Job No. 2 Job No. 3 Charge direct  material and  direct labor   costs to each job  as work is  performed. Direct Manufacturing Costs Direct Materials Direct Labor What about manufacturing overhead? ?
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    4 Accounting 2102 Manufacturing Overhead ( indirect materials and indirect labor ) is allocated to jobs. Indirect Manufacturing Costs Direct Materials Direct Labor Job No. 1 Job No. 2 Job No. 3 Manufacturing Overhead Normal Costing System . . . APPLICATION of manufacturing overhead (the  other method available is an Actual Costing System)
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    5 Accounting 2102 Why Use an Allocation Base? Manufacturing overhead is applied to jobs that
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This note was uploaded on 05/08/2008 for the course ACCT 2102 taught by Professor Farmer during the Spring '08 term at University of Georgia Athens.

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Chapter 3 - Systems Design: Job-Order Costing Chapter Three...

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