×

Let's log you in.

or

Don't have a StudySoup account? Create one here!

×

or

ACCT 2603 - Chapter 3

by: Daniel Notetaker

3

1

9

ACCT 2603 - Chapter 3 ACCT 2603

Daniel Notetaker
YSU
GPA 3.9

Get a free preview of these Notes, just enter your email below.

×
Unlock Preview

These notes are include information that will be on our first exam.
COURSE
Managerial Accounting
PROF.
Kathleen E Mumaw
TYPE
Class Notes
PAGES
9
WORDS
CONCEPTS
Job-Costing
KARMA
25 ?

Popular in Accounting

This 9 page Class Notes was uploaded by Daniel Notetaker on Saturday September 10, 2016. The Class Notes belongs to ACCT 2603 at Youngstown State University taught by Kathleen E Mumaw in Fall 2016. Since its upload, it has received 3 views. For similar materials see Managerial Accounting in Accounting at Youngstown State University.

×

Reviews for ACCT 2603 - Chapter 3

×

×

What is Karma?

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/10/16
Chapter 3 - Job Costing Process Costing Mass production Similar items Total costs are averaged over all units Examples Paint manufacturers Oil reﬁneries Cereal manufacturers Job Costing Unique, custom products or small batches Total costs are accumulated by job Examples Hospitals Custom home builders Advertising agencies Flow of Inventory Through a Manufacturing System Exhibit 3-3: Production Schedule for the Month of December Exhibit 3-4: Bill of Materials Purchasing Process Exhibit 3-7: Job Cost Record Exhibit 3-9: Materials Requisition Direct Labor Costs Are Traced to Individual Jobs Ex 3-13: Direct Labor and Materials Posted to Job Cost Record Calculating Predetermined Manufacturing Overhead Rate Predetermined MOH rate = Total estimated mfg overhead costs / Total estimated amount of allocation base Allocating Manufacturing Overhead (MOH) to Individual Jobs MOH allocated to a job = Predetermined MOH rate x Actual amount of allocation base used by the job Allocating MOH to Individual Job (Example) Exhibit 3-14: Completing the Job Cost Record Cost Flow Actual MOH does not always equal allocated MOH Underallocated (undercosted) Not enough allocated to jobs Too little expense Overallocated (overcosted) Too much allocated to jobs Too much expense Underallocated or Overallocated Manufacturing Overhead Why/How? Estimated manufacturing overhead costs were higher or lower than actual Used more or less of the estimated allocation base than projected Two Solutions Adjust cost of goods sold Prorate among Cost of Goods Sold, Work in Process Inventory, Finished Goods Inventory Reasons Why Management Needs Product Cost 1. Reasons Why Management Needs Product Cost 2. Assess and compare proﬁtability of models 3. Pricing decisions 4. Discounts on high-volume sales 5. Bids for custom orders 6. Financial statement preparation How Do Manufacturers Treat Nonmanufacturing Costs? GAAP: Only inventoriable product costs added to the cost of assets (inventory) Internal decision making: Management wants to know the total cost of the product across the value chain Review for Test - 1, 5, 6, 7, 8, 13, 18, 24

×

25 Karma

×

×

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Allison Fischer University of Alabama

"I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over \$600 per month. I LOVE StudySoup!"

Jim McGreen Ohio University

Forbes

"Their 'Elite Notetakers' are making over \$1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!
×

Refund Policy

STUDYSOUP CANCELLATION POLICY

All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email support@studysoup.com

STUDYSOUP REFUND POLICY

StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here: support@studysoup.com

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to support@studysoup.com