Chapter 4 - Pre-Class Notes

Chapter 4 - Pre-Class Notes - 4-1MANAGERIAL Design:Process...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 4-1MANAGERIAL ACCOUNTINGRSM222Systems Design:Process CostingChapter 44-2Job Costing vs. Process CostingJob Costing vs. Process CostingProcess Costing:Process Costing:Job Costing: Job Costing: 4-3Comparing Job-Order and Process CostingFinishedGoodsFinishedGoodsCost of GoodsSoldCost of GoodsSoldWork inProcessDirect MaterialsDirect MaterialsDirect LabourDirect LabourManufacturing Overhead Manufacturing Overhead LO 14-4Comparing Job-Order and Process CostingFinishedGoodsFinishedGoodsCost of GoodsSoldCost of GoodsSoldDirect LabourDirect LabourManufacturing Overhead Manufacturing Overhead Costs are traced andapplied to Costs are traced andapplied to Direct MaterialsDirect MaterialsLO 14-5Comparing Job-Order and Process CostingFinishedGoodsFinishedGoodsCost of GoodsSoldCost of GoodsSoldDirect LabourDirect LabourManufacturing Overhead Manufacturing Overhead Costs are traced and applied to Costs are traced and applied to Direct MaterialsDirect MaterialsLO 14-6Processing DepartmentsAny unit in an organization where materials, labour, or overhead are added to the product.The activities performed in a processingThe activities performed in a processingdepartment are department are performed ________performed ________on allon allunits of production. Furthermore, the output ofunits of production. Furthermore, the output ofa processing department must be a processing department must be ________________. . Products in a process costing environment Products in a process costing environment typically flow in a sequence from one departmenttypically flow in a sequence from one departmentto another.to another.LO 14-7T-Account and Journal Entry Views of Cost FlowsFor purposes of this example, For purposes of this example, assume there are two assume there are two processing departments – processing departments – Departments A and B.Departments A and B.We will use T-accounts and We will use T-accounts and journal entries.journal entries.LO 14-8Raw MaterialsProcess Cost Flows: The Flow of Raw Materials(in T-account form)Work in ProcessDepartment BWork in ProcessDepartment ALO 14-9Process Cost Flows: The Flow of Labour Costs (in T-account form)Work in ProcessDepartment BWork in ProcessDepartment ASalaries and Wages PayableLO 14-10Process Cost Flows: The Flow of Manufacturing Overhead Costs (in T-account form)Work in ProcessDepartment BWork in ProcessDepartment AManufacturing OverheadLO 14-11Process Cost Flows: Transfers from WIP-Dept. A to WIP-Dept. B (in T-account form)Work in Process Department BWork in ProcessDepartment ADepartmentADepartmentADepartmentBDepartmentBLO 14-12...
View Full Document

This note was uploaded on 04/03/2012 for the course RSM 222 taught by Professor D.cianflone during the Spring '10 term at University of Toronto.

Page1 / 28

Chapter 4 - Pre-Class Notes - 4-1MANAGERIAL Design:Process...

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online