《Survey of accounting 2th会计学 Carl S.Warren》ch10.pptVIP

1. Enters directly into the product. 2. Is significant amount of total product cost. 1. Enters directly into manufacturing the product. 2. Is significant amount of total product cost. Cost other than direct materials cost and direct labor cost incurred in the manufacturing of product. 1. Many different jobs are worked on during each period and unit costs are computed by job. 2. Costs are accumulated using a job cost sheet. 1. A single product is produced on a continuous basis and unit costs are computed by department. 2. Costs are accumulated and reported using a departmental production report. 1. Direct labor hours 2. Direct labor dollars 3. Machine hours 4. Direct materials 5. Other It is a tradeoff between accuracy and timeliness. If a company waited until the end of an accounting period, when all overhead costs are known, the allocated factory overhead would be accurate but not timely. Sales $28,000 Cost of goods sold 20,150 Gross profit $ 7,850 Selling and admin. expenses: Sales salaries expense $2,000 Office salaries expense 1,500 Total selling and admin. expenses 3,500 Income from operations $ 4,350 Goodwell Printers Income Statement For the Month Ended December 31, 2004 5 Learning Objective Use job order cost information for decision making. * Electronic Presentation by Douglas Cloud Pepperdine University Carl S.Warren Survey of Accounting Task Force Clip Art included in this electronic presentation is used with the permission of New Vision Technology of Nepean Ontario, Canada. Accounting Systems for Manufacturing Businesses Chapter 10 1. Distinguish the activities of a manufacturing business from those of a merchandise or service business. 2. Define and illustrate materials, factory labor, and factory overhead costs. 3. Describe accounting systems used by manufacturing businesses. 4. Describe and illustrate a job order cost accounting system. Learning Objectives After studying this chapter, you should be ab