The Nature of Process Cost Systems Notes
Process cost systems are used to apply costs to similar
products that are mass-produced in a continuous fashion.
In a process costing environment, finished units are normally
indistinguishable from each other.
Job Cost Sheet Notes
A job cost sheet is a form used to record the costs chargeable to
a specific job and to determine the total and unit cost of the
completed job. Postings to job cost sheets are made daily.
A separate job cost sheet is kept for each job
Manufacturing Overhead Journalizing Notes
At Wallace Manufacturing Company, direct labor cost is the
Annual overhead costs are expected to be $280,000, and
$350,000 of direct labor costs are anticipated.
Thus, the overhead rate is 80% ($280
Process Cost Flow Notes
Tyler Company uses a process cost system to account for its
manufacture of automatic can openers.
Manufacturing consists of two processes: Machining and
Assembly. Materials, labor, and manufacturing overhead
can be added in both de
Merchandising versus Manufacturing Balance Sheets Notes
Unlike the balance sheet for a merchandising company, which
shows just one inventory category, the balance sheet of a
manufacturing company may have three inventory accounts:
Finished Goods Inventory
Cost Accounting Systems Notes
Cost Accounting involves the measuring, recording, and
reporting of product costs.
A cost accounting system consists of manufacturing cost
accounts that are fully integrated into the general ledger of a
Accumulating Manufacturing Costs Notes
In a job order cost system, manufacturing costs are recorded in
the period in which they are incurred.
No effort is made at this point to associate the cost of materials
with specific jobs or orders.
The costs of raw
Cost of Goods Manufactured Notes
At the end of a period, financial statements are prepared that
present aggregate data on all jobs manufactured and sold. The
Cost of Goods Manufactured Schedule in job order costing is
prepared the same as in Chapter 1 exc
Assigning Manufacturing Costs to Work in Process Notes
Factory Labor costs are assigned to jobs when the work is
performed by the employees.
Labor costs are assigned to jobs on the basis of time tickets.
The time ticket should indicate
Contemporary Developments in Managerial Accounting
Technological Change Through computer-integrated
manufacturing (CIM), many companies can now
manufacture products that are untouched by human hands.
Also, the widespread use of computers has greatly
Assignment of Manufacturing Costs Notes
At the end of the month, entries are needed to record
the cost of the goods transferred from one processing
department to the next,
the cost of goods transferred from the last processing
department to Finished Goods
Accounting Cycle for a Manufacturing Company Notes
The accounting cycle for a manufacturing company is the same
as for a merchandising company when a periodic inventory
system is used.
Except for additional manufacturing inventories and cost