COMM 305 Chapter Notes - Chapter 3: Subledger, Cost Accounting, General Ledger
29 Jan 2017
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Cost accounting - measuring, recording, and reporting of product costs. From data collected, companies determine total cost and unit cost of each product. Cost accounting system - manufacturing cost accounts that are fully integrated into general ledger of company. Uses perpetual inventory system (provides immediate, up-to-date info on cost of product) job-order cost system. Job-order cost system - company assigns costs to each job or to each batch of goods. Process cost system - system of accounting used when large volume of similar products manufactured. In a job-order cost system, manufacturing costs are recorded in the period when they are incurred. Or record overhead costs periodically through adjusting entries. Summary entry - journal entry summarizing totals from multiple transactions. Job cost sheet - form used to record costs chargeable to job and to determine total and unit costs of completed job. Companies keep separate job sheet for each job. Constitute subsidiary ledger for w. i. p. inventory account.
