Chapter 21

Info iconThis preview shows page 1. Sign up to view the full content.

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

Unformatted text preview: Order Cost vs Process Cost Systems Job Order Cost vs Process Cost Systems Illustration 21-4 Chapter 21-13 Job Order Cost vs Process Cost Systems Job Order Cost vs Process Cost Systems Review Question Indicate which of the following statements is not correct: a. Both a job order and a process cost system track the same three manufacturing cost elements – direct materials, direct labor, and manufacturing overhead. b. In a job order cost system, only one work in process account is used, whereas in a process cost system, multiple work in process accounts are used.. c. Manufacturing costs are accumulated the same way in a job order and in a process cost system. d. Manufacturing costs are assigned the same way in a job order and in a process cost system. Chapter 21-14 Process Cost Flows Illustrated Process Cost Flows Illustrated Example – Tyler Company Maker of automatic can openers Manufacturing consists of two processes: Machining – raw materials are shaped, honed, and drilled Assembly – parts assembled and packaged Materials, labor, and manufacturing overhead added in both departments Chapter 21-15 Process Cost Flows Illustrated Process Cost Flows Illustrated Example – Tyler Company Illustration 21-5 Chapter 21-16 Assignment of Manufacturing Costs Assignment of Manufacturing Costs Accumulation of materials, labor, and overhead costs is same as in job order costing Debit Raw Materials Inventory for purchases of raw materials Debit Factory Labor for factory labor incurred Debit Manufacturing Overhead for overhead cost incurred However, assignment of the three manufacturing cost elements to Work in Process is different Chapter 21-17 Assignment of Manufacturing Costs Assignment of Manufacturing Costs Materials A process cost system requ...
View Full Document

This note was uploaded on 02/28/2013 for the course ECON 101 taught by Professor Madrid during the Spring '11 term at Akademia Ekonomiczna w Krakowie.

Ask a homework question - tutors are online