ch15-1 (Job Order Costing) 9.14.2018 Alex .pptx

ch15-1 (Job Order Costing) 9.14.2018 Alex .pptx - Inventory...

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15-1 Inventory Flow LO 3 Direct materials used Direct Labor used Manufacturing Overhead manufacturing costs Work in process inventory (WIP) WIP inventory transferred out to finished good inventory Ending work in process inventory Product 1 Product 2 . . . Product X HOW??? Cost of goods manufactured
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15-2
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15-3 Job Order Costing CHAPTER 15 Chapter Outline LEARNING OBJECTIVES LO 1 Describe cost systems and the flow of costs in a job order system. LO 2 Use a job cost sheet to assign costs to work in process . LO 3 Demonstrate how to determine and use the predetermined overhead rate. LO 4 Prepare entries for manufacturing and service jobs completed and sold. LO 5 Distinguish between under-and overapplied manufacturing overhead.
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15-4 LEARNING OBJECTIVE 1 Describe cost systems and the flow of costs in a job order system. Cost accounting involves measuring , recording , and reporting product costs. Cost accounting uses a perpetual inventory system to provide immediate, up-to-date information on the cost of a product. Periodic: one-month/half year-come to inventory(COGS) in certain of time LO 1 Cost Accounting
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15-5 LEARNING OBJECTIVE 1 Describe cost systems and the flow of costs in a job order system. Firms use product cost information to determine: Which products to produce, What prices to charge, How many units to produce, and Evaluate employee performance. Two basic types: (1) a process (order) costing and (2) a job (order) costing . LO 1 Cost Accounting
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15-6 Used when a large volume of identical products are manufactured (e.g., cereal, refining of petroleum, production of ice cream).-produce one single product Costs are accumulated for a time period – (week or month). Costs are assigned to departments or processes for a specified period of time. More details in Ch 16. Process Cost System LO 1
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15-7 ILLUSTRATION 2.1 Process cost system Process Cost System LO 1 Potato Chips Production 1. Harvest 2. Clean 3. Slice 4. Fry 5. Bag ILLUSTRATION 15.1 Process cost system
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15-8 LO 1
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15-9 Costs are assigned to each job or batch. Important feature : Each job or batch has its own distinguishing characteristics.
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