COMM 1102 Lecture Notes - Lecture 5: Finished Good, Deutsche Luft Hansa, European Cooperation In Science And Technology
Document Summary
Process costing (chapter 6) - a company makes a lot of one product. Job-order costing - many different products are produced each period. The unique nature of each order requires taking or allocating costs to each job and maintaining cost records for each job. Allocating overhead - take a total cost and spread it over many things. Estimating process - means to an end, some of the overhead into each and every one of the units. Job cost sheet - serves a function of keeping the cost per job. Allocation base: used to assign manufacturing overhead to individual jobs. Predetermined overhead rate (pohr): determined before the period begins. Pohr = estimated total manufacturing overhead cost for the coming period. Estimated total units in the allocation base for the coming period. Start by looking at manufacturing hours and production levels from last year ex: pohr = ,000/160,000 direct labour hours.