accounting chapter 19

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cost accounting system
records manufacturing activities using a perpetual inventory system, which continuously updates records for cost of materials, goods in process, and finished goods inventory
general accounting system
records manufacturing activities using a periodic inventory system
job order production
each customized product is manufactured separately
job
the production activities for a customized product
job lot
when a job involves producing more than one unit of a custom product
events in job order costing
1. predict the cost of the job
2. negotiate price and decide whether to pursue the job
3. schedule the production
job order cost accounting system
determine the cost of producing each job or job lot
job cost sheet
separate record maintained for each job
materials ledger cards
perpetual records that are updated each time units are purchased and each time units are issued for the use in production
materials requisition
when materials are needed in production this gets prepared and it includes:
job number, type of material and quantity needed
predetermined overhead rate
estimated overhead costs / estimated activity base
under applied overhead
when their is a remaining debit balance in the factory overhead account
over applied overhead
when their is a credit balance in the factory overhead account