Job costing

items or jobs are generating the most net income can be extremely important to financial managers in today’s economy. Managers must determine which products are making performing the best so that they can capitalize on profits. This also helps to know when it should cut its losses. There are three very useful methods of identifying costs associated to a particular item which are job order costing, activity based costing (ABC), process costing. Job order costing isolates costs to a particular job. ABC

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

the course including a fundamental principle, the differences in the costing systems and cost management systems. The purpose of this essay is help Muddled understand the fundamental costing principle that management systems should reflect the fact that different costs are relevant for different purposes, and how this principle affects the way that job costing and process costing systems are designed. Along the way several costing concepts will be explained and laid out for Muddled to understand in

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

FORMAT: There are 35 multiple choice questions including both conceptual and calculation questions. The exam will be done through My Accounting Lab. IV. FINAL EXAM COVERAGE Final Exam covers the following chapters: Chapter 4: Job Costing Chapter 5: Activity-Based Costing and Activity-Based Management Chapter 8: Flexible Budgets, Overhead Cost Variances, and

CHAPTER 17 JOB ORDER COST SYSTEMS AND OVERHEAD ALLOCATIONS OVERVIEW OF BRIEF EXERCISES, EXERCISES, PROBLEMS, AND CRITICAL THINKING CASES Brief Exercises B. Ex. 17.1 B. Ex. 17.2 B. Ex. 17.3 B. Ex. 17.4 B. Ex. 17.5 B. Ex. 17.6 B. Ex. 17.7 B. Ex. 17.8 B. Ex. 17.9 B. Ex. 17.10 Topic Accounting for overhead Transferring costs Overhead application rates Actual and applied overhead Selecting a cost system Applying direct labor Applying direct materials Recording manufacturing costs Selecting activity bases

三 True/False Questions 1. Job-order costing is used in manufacturing companies and process costing is used in service companies. Ans: False AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1 Level: Easy 2. A flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather jackets is more likely to use job-order costing than process costing. Ans: True AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA

should use a job-order costing system or process costing system. I will discuss how the frameworks are diverse and depict how the chosen framework might work to track expense of the 1.5 gigabyte machine memory chip. I will distinguish the cost driver, and clarify the methodology of following the expenses. I will likewise give examples of job-order costing and process costing system. EEC should use a job order costing system. First off, I will start by describing what is job-order costing and process

| the same as the number of units completed. |   | | | less than the number of units completed. |   | Instructor Explanation: | Chapter 4 | | |   | Points Received: | 5 of 5 |   | Comments: | Great job | | |  2. | Question : | (TCO F) Process costing would be appropriate for

Running Head: Costing Methods Paper Costing Methods Paper Lavelle Haynes ACC/561 February 14, 2011 Professor Micheal Gaspar Super Bakery is a distinguished company created in 1990. The company has is a supplier of mineral, vitamin, and protein enriched doughnuts. The strategy applied by the company is job order cost method. Job costing is a product costing system when costs are accumulated by specific job orders and assigned to batches of products. In other words, manufacturing costs