Job Order Costing Chapter 2 M Accounting

Job Order Costing Chapter 2 M Accounting - Job Order...

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Job Order Costing Chapter 2 1. Cost Accounting: involves the measuring, recording, and reporting of product costs to determine the total cost and unit cost of each product a. Cost Accounting System: accounts for the various manufacturing costs. Uses the perpetual inventory system. a.i. Job Order Cost System: costs are assigned to each job or batch of goods a.ii. Process Cost System: used when a large volume of similar products are manufactured. Accumulates product-related costs for a period of time 2. Job Order Cost Flow a. Flow of Costs parallels the physical flow of materials as they are converted into finished goods. Two steps: a.i. Accumulating the manufacturing costs incurred: no effort is made when costs are incurred to associate the costs with specific jobs a.ii. Assigning the accumulated costs to the work done: involves entries to WIP inventory, FG inventory, and CGS a.ii.1. Raw Materials Inventory: costs of raw materials debited when purchased a.ii.2. Factory Labor: factory labor costs are debited to factory labor when incurred. (i.e. gross earnings of factory workers, employer payroll
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This note was uploaded on 01/05/2012 for the course BUSI 101 taught by Professor Skender during the Fall '08 term at UNC.

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Job Order Costing Chapter 2 M Accounting - Job Order...

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