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accounting 112 - Job Order Costing For companies that...

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Third Exam for Unit III (chapters 16, 17 & 18) Chapter 16 : Job Order and Process Costing Learning Objective 1 Distinguish between job order costing and process costing Cost Accounting Systems Gather information to determine the production cost per unit Help managers: Set selling price so profit can be earned Compute cost of goods sold Income Statement Compute cost of inventory Balance sheet Assign costs to products using one of two systems: Job order costing Process costing Job Order vs. Process Costing
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Unformatted text preview: Job Order Costing For companies that manufacture batches of unique products or specialized services ◦ Accounting firms ◦ Music studios ◦ Building contractors ◦ Health-care providers Accumulates cost per batch or job More prevalent with service-based economies and ERP systems Process Costing For companies that produce identical units through a series of processes ◦ Large producer of similar goods Accumulates cost of each process needed to complete the produce...
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