Chapter+5+Review

Chapter+5+Review - Chapter 5 Review Differences between...

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Chapter 5 Review Job-Order Costing Customize, Build to Order Distinct Unit or # of Units Unit cost computed by dividing total job costs by units produced on that job Accumulate Cost by Job Process Costing Mass Produced, Homogenous Products Cost of Each Unit Virtually Identical Cost Accumulated by Process or Department Normal and Actual Costing Normal costing assigns actual costs of direct materials and direct labor to units produced while applying overhead based on a predetermined estimate. Actual costing assigns actual costs of direct materials, direct labor and overhead to units produced. Normal Costing and Estimating Overhead Applying overhead is a three step process: 1. Calculate the predetermined overhead rate. Done at the beginning of the year based on estimates. 2.
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This note was uploaded on 10/13/2011 for the course ACCT 2361 taught by Professor Severance during the Spring '08 term at Texas State.

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Chapter+5+Review - Chapter 5 Review Differences between...

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