Ch 2 - Job Costing and Reporting Flashcards
clock card
source document used to record number of hours an employee works and determine total labor cost for each pay period
cost accounting system
accounting system for manufacturing activities based on perpetual inventory system
Finished goods inventory
acct that controls the finished goods files, which acts as subsidiary ledger (of Inventory acct) that records the costs of finished goods that are ready for sale
general accounting system
accounting system for manufacturing activities based on periodic inventory system
goods in process inventory
acct in which costs are accumulated for products that are in process of being produced by are not yet complete, also called work in process inventory
job
production of customized product or service
job cost sheet
separate record maintained for each job
job lot
production of more than one unit of customized product or service
job order cost accounting system
cost acct system to determine cost of producing each job or job lot
job order production
production of special-order products, also called customized production
materials ledger card
perpetual record updated each time unites are purchased or issued for production use
materials requisition
source document production mgrs use to request materials for production; used to assign materials costs to specific jobs or overhead
overapplied overhead
amt by which overhead applied to production in period using predetermined overhead rate exceeds actual overhead incurred in period
predetermined overhead rate
rate established prior to beginning of period that relates estimated overhead to another variable, such as estimated direct labor, and is used to assign overhead cost to production
target cost
max allowable cost for product or service; defined as expected selling price less the desired profit
