A direct costs and indirect costs are traced using an

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Unformatted text preview: vidual Job Single Product Job Department Department Cos)ng Systems Illustrated Quick Check ü༏ Which of the following companies is most likely to use a process costing system? A) a processor of natural gas B) a manufacturer of large commercial aircraft C) a custom jewelry manufacturer D) a law firm Quick Check ü༏ Job costing: A) can only be used in manufacturing B) records the flow of costs for each customer C) allocates an equal amount of cost to each unit made during a time period D) is commonly used when each unit of output is identical Quick Check ü༏ Which of the following statements about normal costing is true? A) Direct costs and indirect costs are traced using an actual rate. B) Direct costs and indirect costs are traced using budgeted rates. C) Direct costs are traced using a budgeted rate, and indirect costs are allocated using an actual rate. D) Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate. Job- Order Cos)ng – An Overview Direct Materials Job No. 1 Direct Labor Manufacturing Overhead Job No. 2 Job No. 3 Charge direct material and direct labor costs to each job as work is performed. Indirect Manufacturing Costs Direct Materials Job No. 1 Direct Labor Manufacturing Overhead Job No. 2 Job No. 3 Manufacturing Overhead is allocated to all jobs rather than directly traced to each job. Seven- Step Job Cos)ng Identify the job that is the chosen cost object. 2.  Identify the direct costs of the job. 3.  Select the cost- allocation base(s) to use for allocating indirect costs to the job. 4.  Match indirect costs to their respective cost- a...
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This document was uploaded on 02/16/2014 for the course ACC 311 at Cal Poly Pomona.

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