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Lecture Managerial accounting for managers (4e) - Chapter 4: Job-order costing
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Lecture Managerial accounting for managers (4e) - Chapter 4: Job-order costing
Anh Quân
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ppt
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Managers need to assign costs to products to facilitate external financial reporting and internal decision making. This chapter illustrates an absorption costing approach to calculating product costs known as job-order costing. | Job-Order Costing Chapter 4 Chapter 4: Job-Order Costing Managers need to assign costs to products to facilitate external financial reporting and internal decision making. This chapter illustrates an absorption costing approach to calculating product costs known as job-order costing. Job-Order Costing: An Overview Job-order costing systems are used when: Many different products are produced each period. Products are manufactured to order. The unique nature of each order requires tracing or allocating costs to each job, and maintaining cost records for each job. Job-order costing systems are used when: Many different products are produced each period. Products are manufactured to order. The unique nature of each order requires tracing or allocating costs to each job, and maintaining cost records for each job. Job-Order Costing: An Overview Examples of companies that would use job-order costing include: 1. Boeing (aircraft manufacturing) 2. Bechtel International (large scale . | Job-Order Costing Chapter 4 Chapter 4: Job-Order Costing Managers need to assign costs to products to facilitate external financial reporting and internal decision making. This chapter illustrates an absorption costing approach to calculating product costs known as job-order costing. Job-Order Costing: An Overview Job-order costing systems are used when: Many different products are produced each period. Products are manufactured to order. The unique nature of each order requires tracing or allocating costs to each job, and maintaining cost records for each job. Job-order costing systems are used when: Many different products are produced each period. Products are manufactured to order. The unique nature of each order requires tracing or allocating costs to each job, and maintaining cost records for each job. Job-Order Costing: An Overview Examples of companies that would use job-order costing include: 1. Boeing (aircraft manufacturing) 2. Bechtel International (large scale construction) 3. Walt Disney Studios (movie production) Companies that may benefit from using job order costing systems include Boeing, Bechtel International, and Walt Disney Studios. Boeing is an aircraft manufacturer. Bechtel is perhaps the largest international construction company. The company works on huge projects that are unique to customer needs. Walt Disney Studios produces movies and entertainment parks. Job No. 1 Job No. 2 Job No. 3 Charge direct material and direct labor costs to each job as work is performed. Job-Order Costing – An Example Direct Materials Direct Labor Types of manufacturing costs that are assigned to products using a job-order costing system: Direct costs 1. Direct materials Traced directly to each job as the work is performed. 2. Direct labor Traced directly to each job as the work is performed. Manufacturing Overhead, including indirect materials and indirect labor, are allocated to all jobs rather than directly traced to each job. Job-Order Costing – An .
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