Notes Ch 2

Notes Ch 2 - Busi 101 Notes Ch 2 Job Order Costing I Cost...

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Busi 101 Notes Ch 2 Job Order Costing I. Cost Accounting Systems a. Cost Accounting: Involves the measuring, recording, and reporting of product costs. b. Cost Accounting System: Consists of accounts for the various manufacturing costs. i. Important feature = Perpetual Inventory System that provides immediate, up- to-date information on the cost of a product. c. Job Order Cost System i. Company assigns costs to each job or batch of goods that fill a specific customer order or replenish inventory. ii. Objective: To compute the cost per job. d. Process Cost System i. Accumulates product-related costs for a period of time (rather than for each specific job or batch) for a company that manufactures a large volume of similar products. II. Job Order Cost Flow a. Flow of costs (DM, DL, MOVHD) parallels the physical flow of the materials as they are converted into finished goods. b. Accumulating Manufacturing Costs i. Raw Materials Cost 1. When company receives raw materials purchased, it debits Raw Materials
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This note was uploaded on 04/26/2011 for the course BUSI 101 taught by Professor Skender during the Spring '08 term at UNC.

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Notes Ch 2 - Busi 101 Notes Ch 2 Job Order Costing I Cost...

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