Chapter 16 part 2

Chapter 16 part 2 - Job-Order Costing: Overview Job-order...

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Copyright © 2010 School of Accountancy, Arizona State University Job-Order Costing: Overview Job-order industries produce a wide variety of products or jobs that are distinct. Costs are accumulated by job in a job-order costing system. Each job is documented on a job-order cost sheet. Some firms produce identical units of the same product. The costs of each unit are also the same. This is a… Process-costing costing system
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Copyright © 2010 School of Accountancy, Arizona State University Cost Measurement Classifying the costs and determining the dollar amounts for direct materials, direct labor and overhead. Methods of measurement Actual costing: uses actual costs for direct materials, direct labor, and overhead Normal costing : uses actual costs for direct materials and direct labor but measures overhead costs on a predetermined basis Cost Accounting System
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Copyright © 2010 School of Accountancy, Arizona State University Cost Accounting System Unit cost is made up of Direct materials Direct labor Overhead Traced directly to units is applied using a predetermined rate based on budgeted overhead costs and budgeted amount of driver.
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Copyright © 2010 School of Accountancy, Arizona State University Estimated factory overhead amount for the year Estimated level of cost driver (activity) for the year POHR = The predetermined factory overhead rate (POHR) used to
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This note was uploaded on 04/17/2010 for the course ACC 241 taught by Professor Karengeiger during the Spring '08 term at ASU.

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Chapter 16 part 2 - Job-Order Costing: Overview Job-order...

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