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Unformatted text preview: 15-4 . The box in its lower right corner indicates two major steps in the flow of costs: (1) accumulating the manufacturing costs incurred, and (2) assigning the accumulated costs to the work done. As shown, the company accumulates manufacturing costs incurred in entries 1–3 by debits to Raw Materials Inventory, Factory Labor, and Manufacturing Overhead. When the company incurs these costs, it does not attempt to associate the costs with specific jobs. The remaining entries (entries 4–8) assign manufacturing costs incurred. In the remainder of this chapter, we will use a case study to explain how a job order cost system operates....
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.
- Fall '11