Job Order Costing - Transaction Summary

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• Job Order Costing System Research Paper

  ...Literature Review A literature review • Provides an overview and a critical evaluation of a body of literature relating to a research topic or research problem. • Analyzes a body of literature in order to classify it by themes or categories, rather than simply discussing individual works one after another. • Presents the research and ideas of the field rather than each individual work or author by itself. A literature review often forms part of a larger research project, such as within a thesis (or major research paper), or it may be an independent written work, such as a synthesis paper. Purpose of a literature review A literature review situates your topic in relation to previous research and illuminates a spot for your research. It accomplishes several goals: • provides background for your topic using previous research. • shows you are familiar with previous, relevant research. • evaluates the depth and breadth of the research in regards to your topic. • determines remaining questions or aspects of your topic in need of research. Explain the relevance of material you use and cite. It is important to show that you know what other authors have written on your topic. However, you should not simply restate what others have said; rather, explain what the information or quoted material means in relation to your literature review. • Is there a relevant connection between a specific quote or information and the corresponding argument...

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• Essay about Job Order Costing

  ...Chapter 3 Systems Design: Job-Order Costing Types of Costing Systems Used to Determine Product Costs Process Costing Chapter 4 Chapter 4 Job-order Costing Many different products are produced each period. Many different products are produced each period. Products are manufactured to order. Products are manufactured to order. Cost are traced or allocated to jobs. Cost are traced or allocated to jobs. Cost records must be maintained for each distinct Cost records must be maintained for each distinct product or job. product or job. Types of Costing Systems Used to Determine Product Costs Process Costing Job-order Costing Typical job order cost applications: Typical job order cost applications: Special-order printing Special-order printing Building construction Building construction Also used in the service industry Also used in the service industry Hospitals Hospitals Law firms Law firms Quick Check Which of the following companies would Which of the following companies would be likely to use job-order costing rather be likely to use...

  4174  Words | 22  Pages

• Essay about Job Costing

  ...job costing Definition (according to business dictionary) An order-specific costing technique, used in situations where each job is different and is performed to the customer's specifications. Job costing involves keeping an account of direct and indirect costs. Since both types of costs are usually closely related (a job requiring high input of labor and material is likely to consume more power, machine time, supervision time, inspection time, etc.) indirect costs may be applied as an estimated fraction of direct costs. Job costing methods are similar to contract costing and batch costing methods, and are used in construction, motion picture, and shipping industries, in fabrication, repair, and maintenance works, and in services such as auditing. Read more: http://www.businessdictionary.com/definition/job-costing.html#ixzz26FvrOEVg (according to wikipedia) Job Costing involves the calculation of costs involved in a construction "job" or the manufacturing of goods done in discrete batches. These costs are recorded in ledger accounts throughout the life of the job or batch and are then summarized in the final trial balance before the preparing of the job cost or batch manufacturing statement. [edit] Using...

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• Job Order Costing-Defects, Spoilage and Scrap Essay

  ...JOB ORDER COST SYSTEM (Accounting for Defective, Spoiled Goods and Scrap) Learning Objectives: 1. Review of Cost Accounting Cycle 2. Accounting for Defective Goods 3. Accounting for Spoiled Goods 4. Accounting for Scrap Learning Objective # 1 - Cost Accounting Cycle Cost Accumulation Method: - Product or Manufacturing Cost o Actual Cost System o Normal Cost System ▪ Physical Output = Cost per unit ▪ Direct Material Cost = Percentage of Material Cost ▪ Direct Labor Cost = Percentage of Labor Cost ▪ Direct Labor Hours = Cost per Labor Hour ▪ Machine Hours = Cost per Machine Hour o Standard Cost System (Special Topic) Note: Under Normal cost system problem arises on disposition on overhead variances: - Normally, it is closed to “COGS” if immaterial otherwise, it should be allocated to WIP, FG and COGS. Transactions to Remember: 1. Recording the Purchase of Raw Materials – Direct 2. Recording the Purchase of Raw Materials – Indirect 3. Recording the Issuance of Raw Materials – Direct 4. Recording the Issuance of Raw Materials – Indirect 5. Recording of Incurred Labor – Direct 6. Recording of Incurred Labor –...

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• Essay about EX 2 Job Order Costing

  ...1 JOB ORDER COSTING EXERCISES EX-1 Good Samaritan Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room over-head. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $124,500 Depreciation expense 24,000 Utilities 15,300 Nurse salaries 188,000 Technician wages 47,200 Total operating room overhead $399,000 The overhead costs will be assigned to procedures based on the number of surgical room hours. The Medical Center expects to use the operating room an average of seven hours per day, six days per week. In addition, the operating room will be shut down two weeks per year for general repairs. a. Determine the predetermined operating room overhead rate for the year. b. LeVar Wilson had a 2.5-hour procedure on January 10. How much operating room overhead would be charged to his procedure, using the rate determined in (a)? c. During January, the operating room was used 170 hours. The actual overhead costs incurred for January were $31,800. Determine the overhead under- or over-applied for the period. EX-2 The following account appears in the ledger after only part of the postings have been completed for March: Work in Process...

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• Essay on Proccess Costing vs Job Order

  ...Process Costing - The Hershey Company/ Kaiser Aluminum Process costing is used mostly in companies when converting raw materials into homogenous products. A single product is produced on a continuous basis and all units of the product are identical. Costs are computed by department where the materials, labor, or overhead costs are added to the product in the processing department. Our two companies, The Hershey Company and Kaiser Aluminum, convert raw materials to their finished products of chocolate and aluminum. The Hershey Company's main raw materials come from cocoa products such as cocoa liquor, cocoa butter and cocoa powder that is processed from cocoa beans. They continuously make certain chocolate products under their brand name or franchise. Under their annual report it states that their cost of sales represents the costs directly related to the manufacture and distribution of their products. These costs are the raw materials, packaging, direct labor, overhead, shipping and handling, and warehousing and distribution facilities. Their manufacturing overhead includes salaries, wages, utilities, maintenance and property taxes. This shows why The Hershey Company would use process costing because their costs are traced to only a few departments and there aren't significant differences among the costs of various products. They are continuously making large batches of chocolate products and use an assembly line of mixing,...

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• Ch02 Job Order Costing 2 Essay

  ...Chapter 2 Job Order Costing Learning Objectives After studying this chapter, you should be able to: [1] Explain the characteristics and purposes of cost accounting. [2] Describe the flow of costs in a job order cost system. [3] Explain the nature and importance of a job cost sheet. [4] Indicate how the predetermined overhead rate is determined and used. [5] Prepare entries for jobs completed and sold. [6] Distinguish between under- and overapplied manufacturing overhead. 2-1 Preview of Chapter 2 Managerial Accounting Sixth Edition Weygandt Kimmel Kieso 2-2 Cost Accounting Systems Cost Accounting involves: Measuring, Recording, and Reporting product costs. 2-3  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. 2-4 LO 1 Explain the characteristics and...

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• Greetings, Inc.

  ...Mary E. Jones 01/14/2011 ACC 560 Case 1: Greetings Inc.: Job Order Costing 1. Define and explain the meaning of a predetermined manufacturing overhead rate that is applied in a job-order costing system? A predetermined overhead rate is the rate used to apply manufacturing overhead to work-in-process inventory. The predetermined overhead rate is calculated before the period begins. The first step is to estimate the amount of the activity base that will be required to support operations in the upcoming period. The second step is to estimate the total manufacturing cost at that level of activity. The third step is to compute the predetermined overhead rate by dividing the estimated total manufacturing overhead costs by the estimated total amount of cost driver or activity base. Common activity bases used in the calculation include direct labor costs, direct labor hours, or machine hours. 2. What are the advantages and disadvantages of using the cost of each print as a manufacturing overhead cost driver? The advantage to this approach is that each Greetings store, through the Wall Décor website, can offer a wide variety of prints, yet the individual Greetings stores do not have to hold any inventory of prints or framing materials. About the only cost to the individual store is the computer and high-speed line connection to Wall Décor. The advantage to the customer...

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