Chapter Thirteen: Other Business
is typically associated with manufacturing enterprises; its basic purpose is
to convert direct material, direct labor, and manufacturing overhead into a finished product.
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
is most closely associated with undifferentiated, mass-produced goods.
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
Request raw material from the warehouse
Job cost sheet
Summarizes the material, labor, and
overhead cost in a job costing system
Labor time ticket
Accumulates labor data (time, pay rate,
total labor cost)