Chapter 5 - Chapter 5 Systems Design Job-Order Costing 1...

This preview shows page 1 - 2 out of 3 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Cornerstones of Cost Management
The document you are viewing contains questions related to this textbook.
Chapter 7 / Exercise 7.11
Cornerstones of Cost Management
Hansen/Mowen
Expert Verified
Chapter 5- Systems Design: Job-Order Costing1. Absorption costing: All manufacturing costs, both fixed and variable, are assigned to units of product – units are said to fully absorb manufacturing costs.I. Process and Job-Order Costing1. Under absorption costing, product costs include all manufacturing costsA. Process Costing: Used companies that produce many units of a single product for long periods1. Unit product cost= Total manu. Cost/ Total units produceda. Each unit produced during the period is assigned the same average costb. An example would be refining aluminum ingots at Reynolds.B. Job-Order Costing: Used in situations where many different products are produced each perioda. An example would be commercial aircraft produced by Boeing.b. Characterized by diverse outputsII. Job-Order Costing- An OverviewA. Measuring Direct Materials Cost1. Bill of materials: A document that lists the type and quantity of each type of direct materials needed to complete a unit of product.2. Materials requisition form: A document that specifies the type and quantity of materials to be drawn from the storeroom and identifies the job that will be charged for the cost of the materialsB. Job Cost Sheet: A form prepared for a job that records the materials, labors, and manufacturing overhead costs charged to that jobC. Measuring Direct Labor Costa. Labor changes that cannot be easily traced directly to any job are treated as part of manufacturing overhead1. Time ticket: An hour-by-hour summary of the employee’s activities throughout the day
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Cornerstones of Cost Management
The document you are viewing contains questions related to this textbook.
Chapter 7 / Exercise 7.11
Cornerstones of Cost Management
Hansen/Mowen
Expert Verified

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture