JOB ORDER SYSTEM Flashcards
This is the type of product costing system wherein a company produces many units of a single product.
One unit of product is indistinguishable from other units of product.
The identical nature of each unit of product enables assigning the same average cost per unit.
Process Costing
This is a type of product costing system wherein many different products are produced each period.
Products are manufactured to order.
The unique nature of each order requires tracing or allocating costs to each job and maintaining cost records for each job.
Job-order Costing
Direct Materials and Direct Labor costs are charged to _______.
Each job as work is performed
MOH are allocated to ______.
All jobs
Not directly traced to each job, compared to DL and DM
How do you determine the POHR (Predetermined Overhead Rate)?
Est. Total MOH
Divide: Est. Total Units in the allocation base
This should be for the coming period.
This is a cost driver that causes overhead.
Allocation base
How do you calculate for the Overhead Applied?
Overhead Applied = POHR x Actual Activity
This is the basis of issuing a production order.
Sales Order
This order initiates work on a job.
Production Order
What sheet does the recording of direct materials and direct labor go?
Job Cost Sheets
What account does the Indirect Materials and Indirect Labor go to?
MOH Account
What is the journal when there are direct materials issued to a job increase?
Dr Work-in-ProcessCrRaw Materials
What is the journal when there is direct labor incurred?
Dr Work-in-ProcessCrSalaries and Wages Payable
What is the journal when there are indirect materials issued to a job increase?
Dr MOHCrRaw Materials
What is the journal when there is an indirect labor issued to a job increase?
Dr MOHCrSalaries and Wages Payable
