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
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Process costing is used for homogenous products (continuous flow processes such as producing cans of soda). Job-order costing is used in situations where the organization offers many different products or services‚ such as in furniture manufacturing‚ hospitals‚ and legal firms. Process costing is used where units of product are homogeneous‚ such as in flour milling or cement production. The purpose of a job order cost accounting system is to assign and accumulate costs for each job‚ i.e.
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Cases for Management Decision Making CA-1  suggested uses of cases Case CASE 1 Greetings Inc.: Job Order Costing CASE 2 Greetings Inc.: Activity-Based Costing CASE 3 Greetings Inc.: Transfer Pricing Issues CASE 4 Greetings Inc.: Capital Budgeting CASE 5 Auburn Circular Club Pro Rodeo Roundup CASE 6 Sweats Galore CASE 7 Armstrong Helmet Company Overview This case is the first in a series of four cases that presents a business situation in which a traditional retailer decides
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customers and sell more goods repeat customers. In order to do this‚ the company would need to add a new product line. However ‚ to keep costs down‚ the product line should be one that would not require much additional store space. In order to improve earnings‚ rather than just increase revenues‚ Greetings would have to carefully manage the costs of this new product line. After careful consideration of many possible products‚ the company’s management found a product that seemed to be a very good strategic
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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
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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
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Chapter 2 Case 1: Greetings Inc.: Job Order Costing Solution: 1. As seen in the case‚ using a traditional job-order costing system Wall Décor charges the actual costs of direct materials and direct labor to its specific jobs- unframed prints‚ steel-framed and no matting prints‚ wood-framed and mating prints. Since costs of manufacturing overhead related to production operations as whole‚ these costs cannot be assigned to specific jobs on the basis of actual costs incurred. Instead‚ Wall
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meaning of a predetermined manufacturing overhead rate that is applied in a job-order costing system. The predetermined overhead rate is used for estimating the manufacturing overhead cost because companies cannot assign the actual overhead cost to specific job. From the case‚ Wall Décor uses a traditional job-order costing system. The actual costs of direct materials and direct labor are charged to its specific jobs which are unframed prints‚ steel-framed with no matting prints‚ and wood-framed
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1. Describe when it is appropriate for a company to use a job-order costing system. Answer Job order cost system provides per unit cost of manufactured products. Job order cost system is used by the companies that manufacture custom products for customers or batches of similar products. Job order cost system is used in the companies that offer many different products or services to its customers. Example Industries where job order cost system is used are Furniture manufacturing‚ Apparel manufacturing
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Year 1 (HONS) – HUBBU CASE STUDIES Semester 1‚ 2011 Subject: MGT 101 Principles of Management Subject Lecturer/ Tutor(s): Puan Norzan Abdullah ANALYZING A CASE STUDY STAGE 1: QUICKLY GO THROUGH THE GENERAL SCENARIO PRESENTED TO GAIN A GENERAL UNDERSTANDING OF THE SITUATION. Underline/highlight information which may indicate problems exist STAGE 2: EXAMINE THE QUESTIONS CAREFULLY Read the questions several times-work out what is asking of you STAGE 3: READ THE CASE AGAIN VERY THOROUGHLY
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