Chapter 19：19章.ppt

Copyright ? 2007 Prentice-Hall. All rights reserved 1 Objective 1 Objective 1 Objective 1 Distinguish between job order costing and process costing Copyright ? 2007 Prentice-Hall. All rights reserved 2 Cost Systems Cost Systems Cost Systems ? There are two basic systems used by manufacturers to assign costs to their products: – Job order costing ? Used panies that produce unique products or specialized services ? Costs are accumulated by jobs – Process costing ? Used panies that produce identical units ? Costs are accumulated by each process that is needed plete a product Copyright ? 2007 Prentice-Hall. All rights reserved 3 S19-1 S19-1 S19-1 a. A manufacturer of plywood would use b. A manufacturer of wakeboards would use c. A manufacturer of luxury yachts would use d. A professional services firm would use e. A landscape garden contractor would use process costing. process costing. job costing. job costing. job costing. Copyright ? 2007 Prentice-Hall. All rights reserved 4 Objective 2 Objective 2 Objective 2 Record materials and labor in a job order costing system Copyright ? 2007 Prentice-Hall. All rights reserved 5 Work in Process Cost of Goods Sold Labor Materials Indirect Finished Goods Factory Overhead Direct Direct Allocate Cost Flow Cost Flow Cost Flow Indirect Copyright ? 2007 Prentice-Hall. All rights reserved 6 Raw Materials Material Purchases Direct Direct Material Material Direct Direct Material Material Accounting for Materials Accounting for Materials Actual Overhead Costs Indirect Material Manufacturing Overhead Work in Process Copyright ? 2007 Prentice-Hall. All rights reserved 7 S19-3 S19-3 S19-3 GENERAL JOURNAL DATE DESCRIPTION REF DEBIT CREDIT Materials inventory – canvas 70,000 Accounts payable 70,000 Materials inventory – thread 1,000 Accounts payable 1,000 Copyright ? 2007 Prentice-Hall. All rights reserved 8 S19-3 S19-3 S19-3 C865 Canvas (black) 7/10 7000 $10 70,000 Canvas (black) 7000 $10 70,000 T444 Threa