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ACCT CH:2
JOB ORDER COSTING
TERM/QUESTION | Answer |
---|---|
Cost Accounting Systems | measure, record, and report product costs |
Job Ordering Costing System | an accounting system that accumulates costs by job |
Job | the production of a unique product/specialized service. It may be one unit/ a batch of units |
Process Costing System | an accounting system that accumulates costs by process. It's used when companies manufacture identical units |
Purchasing Materials | often stores for later usage |
Using Materials in Production | -direct materials -indirect materials |
Materials | materials purchased and materials used in production are usually different amounts |
Using Materials | when materials are received on the production floor, the direct materials are recorded on the job cost record |
Materials Requisition | a request to transfer materials to the production floor |
End of the Period | actual manufacturing overhead costs are not known |