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$ 734,675 4-27 ^ : K W 4-28 : K W Differences: Both systems assign material, labour, and overhead
costs to products and they provide a mechanism for
computing unit product costs. 1. Process costing is used when a single product is produced on a Both systems use the same manufacturing accounts,
including Manufacturing Overhead, Raw Materials,
Work in Process, and Finished Goods. 2.
2. Process costing systems accumulate costs by department. Job-order continuing basis or for a long period of time. Job-order costing is used
when many different jobs having different production requirements
are worked on each period.
costing systems accumulated costs by individual jobs.
3. Process costing systems use department production reports to accumulate costs. Job-order costing systems use job cost sheets to
accumulate costs. The flow of costs through the manufacturing accounts
is basically the same in both systems. 4. Process costing systems compute unit costs by department. Job- order costing systems compute unit costs by job on the job cost
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- Fall '10