ch3 - Managerial Accounting Chapter Three - Job Order...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Managerial Accounting Chapter Three - Job Order Costing
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter Three Highlights Process vs Job Order Costing (JOC) ID Documents used in JOC Compute Overhead Rates Journal entries related to JOC including Direct Materials, Direct Labor, Mfg Overhead Calculation of under/over applied overhead
Background image of page 2
Costing Systems Unit cost are important for budgeting, operational control, product line decisions, and for setting selling prices of goods or services 2 types of costing system provide unit costs: process costing and job order costing
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Process Costing System used when a single homogeneous product is produced total Mfg cost for a period of time is divided by total units produced = per unit cost example: cement producers would use a process cost system
Background image of page 4
Job Order Costing Used when a company produces a variety of products in different batches (i.e. . Movie studios) costs are assigned to each project example: custom home builder would use a job order costing system
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Job Order Costing - The Details A job cost sheet is used to collect the details of the costs incurred on a specific job This sheet includes a project name and identifying number Also included on this sheet would be the details of the DM, DL and overhead costs assigned to the completed the project
Background image of page 6
Materials Cost A materials requisition form filled out to withdraw materials out of raw materials store area slip identifies the type of materials taken and quantity Also included is the job identifier
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Materials Cost requisitions can be used to record materials cost note: indirect materials are charged to general Mfg overhead
Background image of page 8
Direct Labor Costs Time sheets are used to track employee(s) time on a specific job labor cost are then calculated and assigned over to each job cost sheet if labor cannot be matched to a specific project/job = Mfg overhead
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/20/2009 for the course ACC 406 taught by Professor Unknown during the Summer '09 term at Ryerson.

Page1 / 31

ch3 - Managerial Accounting Chapter Three - Job Order...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online