Job Costing Flashcards
Job Order Costing
used where many different products are produced each period
Absorption Costing
including all manufacturing costs - DM + DL & Both VMOH & FMOH
Normal Costing
system in which overhead costs are applied to a job by multiplying a POR * actual amt of allocation basis
Process Costing
used in companies that produced homogeneous products on a continuous basis. Costs are accumulated by dept/process & assigned uniformly to all physical units that pass through the dept in the period
Issuance & Purchase of Materials
Dr Raw Material
Cr A/P
Issuance of Direct & Indirect Material
Dr WIP
Dr MOH
Cr Raw Material
Issuance of Labour Costs
Dr WIP
Dr MOH
Cr Salaries Payable
MOH Costs
Dr MOH
Cr A/P
MOH Variance (Overapplied)
Dr MOH
Cr COGS
MOH Variance (Underapplied)
Dr COGS
Cr MOH
Format for Job Order Costing
Start WIP Current Period Costs Direct Material Direct Labour Applied MOH Total Manufacturing Cost for period Manufacturing cost to dae State of Business
