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OBJCHP3gar_09 - 5 Calculate the overhead applied to a job...

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INTRODUCTORY COST ACCOUNTING UNIT 3 Systems Design: Job Order Costing LEARNING OUTCOMES : 1. Distinguish between Process Costing systems and Job Order Costing systems and identify companies that would use each method. (p. 71-72) Define the Absorption Costing method. (p.70) 2. Identify the documents used to control the flow of costs in a job order costing system including Bill of materials, material requisition form, job cost sheet, time ticket . (p. 72-77) 3. Compute the pre-determined overhead rates and explain why estimated overhead costs (rather than actual overhead costs) are used in the costing process. Understand the terms pre-determined overhead rate, normal cost system, allocation base, cost driver, overhead application. 4. Prepare journal entries to record the flow of direct materials cost, direct labour cost, and manufacturing overhead cost in a job order cost system. (pp 80-87)
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Unformatted text preview: 5. Calculate the overhead applied to a job in Work in Process by use of a pre-determined overhead rate. Describe when it is appropriate to use multiple departmental overhead rates instead of a single plant-wide rate. (pp 82-83, p95) 6. Compute under/over applied overhead , dispose of the amount by one of the methods listed, and prepare the related journal entries. (pp 89-94) 7. Describe the use of information technology for management accounting in large companies using ERP systems. (pp. 95-97 8. Prepare journal entries to deal with scrap and rework of acceptable production (pp98-99) Demonstration/Assignment Problems: E3-1, E3-2, E3-4, E3-5, E3-6, E3-7, E3-8, E3-9, 3-10, 3-11, P3-12, P3-13, P3-14, P3-15,P3-16, P3-17, P-18, P3-19, P3-20, P3-21, 3-22, P3-23, P3-24, P3-26, P3-29, P3-30 RF 09/09...
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