notes-c3 - C3- JOB ORDER COSTING notes-c3.doc Written by...

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C 3 - JOB ORDER COSTING notes-c3.doc Written by Professor Gregory M. Burbage, MBA, CPA, CMA, CFM © CHAPTER LEARNING OBJECTIVES: MAJOR: - Identify and explain the components of a product cost. - Explain and calculate total cost and per unit cost. - Calculation of and use the Predetermined Factory Overhead Rate. - Explain the disposition of over or under-applied FOH (factory overhead). - Preparation of journal entries, especially those that are unique to this subject MINOR: - Impact of applying overhead at capacity versus estimated activity - Appendix 3A. NOT IMPORTANT: - Layout (how they look) of forms. * WHEN PREPARING HOMEWORK PROBLEMS THAT REQUIRE JOURNAL ENTRIES, USE BOTH GENERAL JOURNAL ENTRIES AND T ACCOUNT ENTRIES THROUGHOUT THE SEMESTER! ABSORPTION (FULL) COSTING is a method that considers all traditional product costs (DM, DL, VFOH & FFOH) as part of the cost of the product. This is what we are studying and what we previously studied in financial accounting when discussing inventory. Absorption (Full) Costing is also GAAP.
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