Accounting Principles Job Order Costing参考.pptx

20Job Order CostingLearning ObjectivesDescribe cost systems and the flow of costs in a job order system.1Use a job cost sheet to assign costs to work in process.2Demonstrate how to determine and use the predetermined overhead rate.3Prepare entries for manufacturing and service jobs completed and sold.4Distinguish between under- and overapplied manufacturing overhead.5Describe cost systems and the flow of costs in a job order system.LEARNINGOBJECTIVE1Cost 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 on the cost of a product.Two basic types: (1) a process order cost system and (2) a job order cost system.LO 1Process Cost SystemUsed 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.LO 1Process Cost SystemIllustration 20-1Process cost systemLO 1Job Order Cost SystemCosts are assigned to each job or batch.Important feature: Each job or batch has its own distinguishing characteristics. Objective is to compute the cost per job.Measures costs for each job completed – not for set time periods.LO 1Job Order Cost SystemIllustration 20-2 shows the recording of costs in a job order cost system for Disney as it produced two different films.Illustration 20-2Job order cost system for DisneyLO 1Management InsightJobs Won, Money LostMany companies suffer from poor cost accounting. As result, they sometimes make products they should not be selling at all, or they buy product components that they could more profitably make themselves. Also, inaccurate cost data leads companies to misallocate capital and frustrates efforts by plant managers to improve efficiency. For example, consider the case of a diversified company in the business of rebu