chapter%2050 - Chapter 5 Job-Ordering Costing 1 Accounting...

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September 7, 2011 Accounting 2102 1 Chapter 5 Job-Ordering Costing
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Determining the cost of a unit of production The procedure for relating costs to a specific cost object is dependent upon the manufacturer's operating environment. 2 environments: Job Order (Chapter 5) . . . wide variety of products; costs accumulated by JOB example: Custom Home Builder Process (Chapter 6) . . . homogeneous products; costs accumulated by DEPARTMENT example: Hostess Snack Cakes September 7, 2011 Accounting 2102 2
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Foundation Let’s review the product cost categories we will be tracking DM DL MOH Accounting for MOH Actual Costing Normal Costing September 7, 2011 Accounting 2102 3
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Take a Closer Look at a NORMAL COSTING NORMAL COSTING system MOH must be estimated and applied to production using 3 steps: 1. Calculate the predetermined overhead rate (POHR) 1. Apply MOH to production throughout the year 1. Reconcile the difference between actual MOH and applied MOH (let’s tackle Step 3 on the next slide) September 7, 2011 Accounting 2102 4
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This note was uploaded on 09/07/2011 for the course ACCT 2102 taught by Professor Farmer during the Spring '08 term at University of Georgia Athens.

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chapter%2050 - Chapter 5 Job-Ordering Costing 1 Accounting...

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