| A | B |
|---|
| Job Order costing | Used by manufacturers of heterogenous goods or when goods are produced in batches |
| Job Order costing | Used by clothing manufacturer, general contractors, printers |
| Job Order costing | How is it used? Use a separate job cost sheet for each job. |
| Job Order costing | Time-You;ll know how much of a job costs when the job is finished by jus adding up the costs on the job cost sheet. |
| Process costing-6 | to distinguish between job order and process costings to examine Process costing |
| Process costing | To learn how to compute equivalent units & prepare a cost of production report |
| Process Costing | is used to account for the production of "live" goods, usually manufactured in a continuos process (assembly line). Goods pass through diferent depts., so costs are accounted for dept. by dept. (chairs, automobiles, sugar) Periodically, costs of goods produced is estimated (monthly0 (cost objectiove=dept.). A cost of production report is prepared to determine the cost of production. You need to know how to calculate equivalent units (EQUs) in order to prepare this report. |
| Process Costing | Goods pass through different depts., so costs are accounted for dept. by dept. (chairs, automobiles, sugar |
| Process Costing | Periodically, costs of goods produced is estimated (monthly0 (cost objectiove=dept.). A cost of production report is prepared to determine the cost of production. You need to know how to calculate equivalent units (EQUs) in order to prepare this report. |
| Equivalent units | Expresses work done this period in terms of wholeness (whole units) |
| Equivalent units | Expresses "wholeness" |
| Equivalent units | Anything 100% complete is already whole, therefore, it would be equal to an equivalent unit) |
| 2 types of factory overhead | Actual & Applied |
| Actual overhead | ZXZX |
| Applied overhead | is the amount of factory overhead applied in excess of the actual factory overhead incurred for a production period. |
| Job order costing | the mfg. acctg. system used to account for the mfg. of goods produced in single units (each job is uniqwue) or goods produced in identical units, costs are accumulated job by job |
| Process costing | to account for the production of like goods, usually manufactured goods in a continuous process (assembly line, goods pass through different depts. so costs are accounted for dept. by dept. |
