Chapter 21. Job Order and Process Costing
Define job order costing and identify the types of industries that would be most apt to use this system.
Demonstrate the mechanics of a job order costing system.
Define and illustrate operation costing.
Define and illustrate project costing.
Define process costing and discuss the main objectives and characteristics of a process cost system.
Briefy discuss the use of a constant‐flow accumulation system and a just‐in‐time inventory system.
Discuss, in depth, the cost of production report and how it aids management in analyzing the total costs and unit costs of each department.
Identify and set up the four steps (schedules) that make up a cost of production report.
Adjust unit costs when materials are added to production after the first department.
Discuss the effect of beginning work‐in‐process inventories.
Most is nonaccountants are unaware of the volume of paperwork that rocessed in a manufacturing company. Small and medium‐sized manufacturing companies may handle thousands of requisitions, purchase orders, receiving reports, vendors' invoices, vouchers, checks, stock issues, and similar business documents each month. A large manufacturing company may handle tens of thousands of such documents a month. Thus, it is obvious that clearly Defined cost accumulation systems are required to control this volume of paperwork.
The accumulation and Classification of routine product cost data are ...