tailieunhanh - Lecture Accounting: Tools for business decision making (5th edition): Chapter 15 - Kimmel, Weygandt, Kieso

Chapter 15 - Job order costing. In this chapter students will be able to: Describe cost systems and the flow of costs in a job order system, use a job cost sheet to assign costs to work in process, demonstrate how to determine and use the predetermined overhead rate, prepare entries for manufacturing and service jobs completed and sold. | JOB ORDER COSTING Accounting, Fifth Edition 15 After studying this chapter, you should be able to: Explain the characteristics and purposes of cost accounting. Describe the flow of costs in a job order cost system. Explain the nature and importance of a job cost sheet. Indicate how the predetermined overhead rate is determined and used. Prepare entries for jobs completed and sold. Distinguish between under- and overapplied manufacturing overhead. Learning Objectives Preview of Chapter 15 Accounting Fifth Edition Kimmel Weygandt Kieso Cost Accounting involves: Measuring, Recording, and Reporting product costs. Accounts are fully integrated into the general ledger. Perpetual inventory system provides immediate, up-to-date information. Two basic types: (1) a job order cost system and (2) a process cost system. LO 1 Explain the characteristics and purposes of cost accounting. Cost Accounting Systems Job Order Cost System Costs are assigned to each job or batch. Key feature: Each job or batch has its own distinguishing characteristics. Objective: Compute the cost per job. Measures costs for each job completed – not for set time periods. LO 1 Explain the characteristics and purposes of cost accounting. Cost Accounting Systems Illustration 15-1 LO 1 Explain the characteristics and purposes of cost accounting. Cost Accounting Systems Used when a large volume of similar products are manufactured - (cereal, refining of petroleum, production of ice cream). Costs are accumulated for a time period – (week or month). Costs are assigned to departments or processes for a specified period of time. Process Cost System LO 1 Explain the characteristics and purposes of cost accounting. Cost Accounting Systems LO 1 Explain the characteristics and purposes of cost accounting. Illustration 15-2 Cost Accounting Systems Cost accounting involves the measuring, recording, and reporting of: a. Product costs. b. Future costs. c. Manufacturing processes. d. Managerial accounting decisions. . | JOB ORDER COSTING Accounting, Fifth Edition 15 After studying this chapter, you should be able to: Explain the characteristics and purposes of cost accounting. Describe the flow of costs in a job order cost system. Explain the nature and importance of a job cost sheet. Indicate how the predetermined overhead rate is determined and used. Prepare entries for jobs completed and sold. Distinguish between under- and overapplied manufacturing overhead. Learning Objectives Preview of Chapter 15 Accounting Fifth Edition Kimmel Weygandt Kieso Cost Accounting involves: Measuring, Recording, and Reporting product costs. Accounts are fully integrated into the general ledger. Perpetual inventory system provides immediate, up-to-date information. Two basic types: (1) a job order cost system and (2) a process cost system. LO 1 Explain the characteristics and purposes of cost accounting. Cost Accounting Systems Job Order Cost System Costs are assigned to each job or batch. Key feature: Each job or .