ACCT2102-Lecture4(stds).ppt

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1、ACCT2102Lecture4:JobCostingProduct&ServiceCosting1Reading:Lecturenotes&Horngrenetal.Chapter4LearningObjectivesDefineproductcosting.Distinguishjobcostingfromprocesscosting.ExplaincostingproductsorservicesusingJobCosting.Explainendofperiodadjustments.21.ProductCostingProductcostingistheproces

2、sofaccumulating,classifyingandassigningdirectmaterials(DM),directlabour(DL)andmanufacturingoverhead(O/H)coststoproductsorservices.Severaltypesofproductcostingsystemsareavailabledependingonthenatureoftheproduct,andthemethodofoverheadassignmentchosen32.Job-ordercostingversusprocesscostingsyst

3、ems.4ProcessCostingJob-orderCostingThecostobjectisaunitormultipleunitsofdistinct(unique)productorservicecalledajob.Exampleofjobordercostingapplications:Special-orderprintingBuildingconstructionAlsousedintheserviceindustrySecuritycompany(Olympicsgames)LawandauditfirmsJob-ordercostingversus

4、processcostingsystems:5Job-orderCostingProcessCostingManyunitsofasingle,homogeneousproductflowevenlythroughacontinuousproductionprocess(e.g.softdrinkmanufacturer).Oneunitofproductisindistinguishablefromanyotherunitofproduct..Eachunitofproductisassignedthesamecost(averagecost).Itcanals

5、oappliedtohomogeneousservices.Lecture63.CostingproductsorservicesusingaJob-OrderCostingSystemSequenceofevents:6ReceiveordersfromcustomersSchedulejobsOrdermaterialsBeginproductionThejobinthissystemisdrivenbythecustomer.Forexample:Job-OrderCostingWeneedtoknowthreethings:Thecostcomponentsoft

6、hejob/orderThesourcedocumentstoidentifythesecomponentsHowtoclassifythesecostsintermsofdirectandindirectcosts7JobCosting–CostComponents8THEJOBDirectmaterialDirectlabourTraceddirectlytoeachjobTraceddirectlytoeachjobManufacturingoverhead(OH)AppliedtoeachjobJobCostingDocumentFlowSummary-M

7、aterials9JobCostSheetsMaterialsRequisitionDirectmaterialsIndirectmaterialsManufacturingOverheadAccountMaterialsusedmaybeeitherdirectorindirect.DirectMaterialsDMsarematerialsthatbecomeanintegralpartoftheproductandthatcanbeconvenientlytraceddirectlytoth