Category Archive for: Accounting Systems for Measuring Costs

‘THE TREND TOWARD MORE INFORMATIVE COST ACCOUNTING SYSTEMS

Today’s global economy is fiercely competitive. To a large extent. competitive means .cost-efficient: If you cannot produce quality products efficiently. you may lose O\1t to the Japanese. the Germans. the Koreans. or a company down the street. Up to this point. we have discussed job order. process. and activity-based costing methods. lob order costing has…

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Utilities Costs

Utilities costs account for nearly $69.600 of Master File’s total manufacturing overhead costs. A large portion of this amount is incurred to heat the factory and supply power 10 the large machines used in manufacturing the metal cabinet line. Thus, using ABC; Master File identifies heating demands and machinery power demands as paraphrase activities. As…

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Activity Based Costing (abc)

In we illustrated how manufacturing overhead costs may be applied to. production using an overhead application rate based on a single cost driver (such as direct labor hours). This’ approach works well for many companies, especially if all products are manufactured in a similar manner, But now consider, a company that uses very different processes…

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For the Assembly Department.

For the Assembly Department. started and completed equals 7.000 units (10.000 – 3.000. or 8.000 – 1.(00), For these 7.000 units. 100% of each resource was added during the month of March, Total jini.yluiti units transferred to Packaging equal the 7,000 started and completed in March plus the 1.000 units from beginning work in process.…

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PROCESS COSTING’

As emphasized in the preceding section, job order costing is appropriate when each unit of product, or “batch” of production, is manufactured to different specifications. Many companies, however, produce a continuous stream of identical units, such as bottles of beer, gallons of gasoline, or kilowatt hours of electricity. When identical products are produced in a…

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predetermined overhead

¬†application rate often is used to assign appropriate amounts of overhead costs to work in process. Oak & Glass uses an overhead application rate.equal to 150% of direct labor cost. Therefore, each job cost sheet is charged with overhead costs equal to 150% of the direct labor cost relating to the job. The entry to…

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JOB ORDER COSTING

The distinguishing characteristic of job order costing is that manufacturing costs are accumulated separately for each job. As explained in, all manufacturing costs are charged (debited) to the Work in Process Inventory account as incurred. In job costing, Work in Process Inventory is a controlling (or summary) account. supported by job cost sheets for each…

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Cost Accounting

Cost Accounting Assignment help An organization’s accounting system must provide a good “map” that links the costs and processes used to create goods and/or services. Employees need this information to assess how well they use the company’s resources. Determining the least costly combina-. tion of direct labor, direct materials, and overhead to create a productor…

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