tailieunhanh - Lecture Introduction to managerial accounting: Chapter 2 - Folk, Garrison, Noreen

Chapter 2 - Systems design: Job-order costing. After studying Chapter 2, you should be able to: Distinguish between process costing and job-order costing and identify companies that would use each costing method, identify the documents used in a job-order costing system, compute predetermined overhead rates and explain why estimated overhead costs (rather than actual overhead costs) are used in the costing process,. | Systems Design: Job-Order costing Chapter2 Types of Costing Systems Used to Determine Product Costs Process Costing Job-order Costing Many different products are produced each period. Products are manufactured to order. Cost are traced or allocated to jobs. Cost records must be maintained for each distinct product or job. Chapter 3 Types of Costing Systems Used to Determine Product Costs Process Costing Job-order Costing Typical job order cost applications: Special-order printing Building construction Also used in the service industry Hospitals Law firms Quick Check Which of the following companies would be likely to use job-order costing rather than process costing? a. Scott Paper Company for kleenex. b. Architects. c. Heinz for ketchup. d. Caterer for a wedding reception. e. Builder of commercial fishing vessels. Quick Check Which of the following companies would be likely to use job-order costing rather than process costing? a. Scott Paper Company for kleenex. b. Architects. c. Heinz for ketchup. d. Caterer for a wedding reception. e. Builder of commercial fishing vessels. Job-Order Costing THE JOB Direct material Traced directly to each job Direct labor Traced directly to each job Manufacturing overhead (OH) Applied to each job using a predetermined rate Sequence of Events in a Job-Order Costing System Receive orders from customers Schedule jobs Begin production Order materials Manufacturing Overhead Job No. 1 Job No. 2 Job No. 3 Charge direct material and direct labor costs to each job as work is performed. Sequence of Events in a Job-Order Costing System Direct Materials Direct Labor Apply overhead to each job using a predeter-mined rate. Sequence of Events in a Job-Order Costing System Direct Materials Direct Labor Job No. 1 Job No. 2 Job No. 3 Manufacturing Overhead Job-Order Cost Accounting The primary document for tracking the costs associated with a given job is the job cost sheet. Let’s investigate PearCo Job Cost Sheet Job Number A - 143 Date | Systems Design: Job-Order costing Chapter2 Types of Costing Systems Used to Determine Product Costs Process Costing Job-order Costing Many different products are produced each period. Products are manufactured to order. Cost are traced or allocated to jobs. Cost records must be maintained for each distinct product or job. Chapter 3 Types of Costing Systems Used to Determine Product Costs Process Costing Job-order Costing Typical job order cost applications: Special-order printing Building construction Also used in the service industry Hospitals Law firms Quick Check Which of the following companies would be likely to use job-order costing rather than process costing? a. Scott Paper Company for kleenex. b. Architects. c. Heinz for ketchup. d. Caterer for a wedding reception. e. Builder of commercial fishing vessels. Quick Check Which of the following companies would be likely to use job-order costing rather than process costing? a. Scott Paper Company for kleenex. b. Architects. .