Chapter Thirteen: Other Business Processes Conversion process is typically associated with manufacturing enterprises; its basic purpose is to convert direct material, direct labor, and manufacturing overhead into a finished product. Job costing is where goods are produced “to order.” Units of product are differentiated; that is, you can tell the difference between them by looking at them Process costing is most closely associated with undifferentiated, mass-produced goods. Hybrid system is the combination of both job costing and process costing. In this system, a “basic unit” might be mass produced, but then customized based on a client’s order. Forms Used in Manufacturing Form Name Purpose Originator Recipient Materials requisition Request raw material from the warehouse for production Production Warehouse Job cost sheet Summarizes the material, labor, and overhead cost in a job costing system Production Accounting Labor time ticket Accumulates labor data (time, pay rate, total labor cost)
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