COMM 305 Chapter Notes -General Ledger, Pro Rata, Finished Good
25 Jan 2015
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* explain the characteristics and purpose of cost accounting. * describe the flow of costs in a job-order cost accounting system. * distinguish between under- and over-applied manufacturing overhead and discuss the methods of adjusting overheads. Consists of the various manufacturing costs that are fully integrated into the general ledger system. There are two basic types of cost accounting systems: Costs are assigned to each job or batch. Job may be for a specific order or inventory. Key feature: each job/batch has its own distinguishing characteristics. Measures costs for each job completed not for set. Each job has distinguishing characteristics and time periods related costs. Used when a large volume of similar products are manufactured. Cost accumulated for specific time period (a week. Costs are assigned to departments or processes for or a month) a set period of time. The cost flow parallels the physical flow of the materials as they are converted into finished goods.
