This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: o No beginning inventories WIP o Add chemicals, jugs, caps, labels o Pay employees o Add up utilities, factory insurance, depreciation, maintenance on factory o No Ending WIP inventories-Hybrid costing o Company that would otherwise use PROCESS costing makes BATCHES of different products Kellogs cereal 4) -Process costing o 1. Record the materials that go into production. o 2. Record the labor that goes into production. o 3. Record the overhead costs that go into production. o 4. Total the costs that go into production. o 5. Divide by the number of products that come out of production 5)-Job order costing o Direct materials (for this job) o ADD Direct labor (for this job) o ADD Mfg Overhead (to this job) o Equals Total Manufacturing Cost (for this job) o COST OF JOB MANUFACTURED 6)-Hybrid costing o Activity based costing (ABC) o Process costing after each batch...
View Full Document