COMM 305 Chapter Notes - Chapter 4: Weighted Arithmetic Mean, European Cooperation In Science And Technology, Unit
6 Feb 2017
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Document Summary
Process cost system - accounting system used to apply costs to similar products mass-produced in continuous way. Similarities and differences between job-order cost and process. Similarities: manufacturing cost elements: dm, dl, moh, accumulation of costs of materials, labor, and overhead, flow of costs. Work in process accounts one for each job one for each process. Documents used job cost sheets product cost reports. Operations costing - combination of process cost and job-order cost system, where products manufactured mainly by standardized methods, with some customization. Debit raw materials to rm inventory when materials purchased. Debit factory labor to fl when labor costs incurred. Debit overhead costs to moh as incurred. Fewer requisitions are generally used than in job-order cost system because materials used for processes rather than for specific jobs. Labor costs assigned to process rather than job. Machine time used major driver of overhead costs in continuous manufacturing operations.
