ACIS 2116 Chapter 5 Powerpoints Part 1 Spring 2009

ACIS 2116 Chapter 5 Powerpoints Part 1 Spring 2009 - ACIS...

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Unformatted text preview: ACIS 2116 Chapter Five Part 1 Job Costing, Process Costing and Operations Costing Types of Product Costing Systems Process Costing Job Costing What kind of companies use process costing? Types of Product Costing Systems Process Costing Job Costing A company that produces many units of a single product. One unit of product is indistinguishable from other units of product. Each unit of product is assigned the same average cost per unit. Types of Product Costing Systems Process Costing Job Costing Example companies: 1. Weyerhaeuser (paper manufacturing) 2. Reynolds Aluminum (refining aluminum ingots) 3. Coca-Cola (mixing and bottling beverages) Types of Product Costing Systems Process Costing Job Costing What kind of companies use job costing? Types of Product Costing Systems Process Costing Job Costing Many different products are produced each period. Products are manufactured to order. Cost must be traced or allocated to each job. Cost records must be maintained for each job. Types of Product Costing Systems Process Costing Job Costing Example companies: 1. Boeing (aircraft manufacturing) 2. Bechtel International (large scale construction) 3. Walt Disney Studios (movie production) 4. KPMG (C.P.A. firm) Types of Product Costing Systems Process Costing Job-order Costing Operations Costing Hybrid of Process and Job Costing Large number of products processed within a batch Products within the batch are homogeneous. Types of Product Costing Systems Operations Costing What kinds of companies use operations costing? Automobile Manufacturers Clothing Manufacturers Comparing Process and Job Costing Job Process Number of jobs worked Many Single Product Cost accumulated by Job Department Average cost computed by Job Department Test Your Knowledge Which of the following companies would be likely to use job-order costing rather than process costing? a. Scott Paper Company for Kleenex. b. Architects. c. Heinz for ketchup. d. Caterer for a wedding reception. e. Builder of commercial fishing vessels. Test Your Knowledge Which of the following companies would be likely to use job-order costing rather than process costing? a. Scott Paper Company for Kleenex. b. Architects. c. Heinz for ketchup. d. Caterer for a wedding reception. e. Builder of commercial fishing vessels. Manufacturing Overhead Job No. 1 Job No. 2 Job No. 3 Charge Charge direct direct material and material and direct labor direct labor costs to costs to each job as each job as work is work is performed. performed. Direct Manufacturing Costs Direct Materials Direct Labor Job Cost Sheet What is a job cost sheet? Used to accumulate materials, labor and overhead costs charged to a job....
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This note was uploaded on 09/25/2009 for the course ACIS 2116 taught by Professor Cmeasterwood during the Spring '08 term at Virginia Tech.

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ACIS 2116 Chapter 5 Powerpoints Part 1 Spring 2009 - ACIS...

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