ACC 410 Chapter Notes - Chapter 5: Accounts Payable, Finished Good, Cost Accounting
Document Summary
Lecture notes: ch. 5 job costing key concepts: what job and job shop mean. The main difference among costing systems is in the level at which costs are aggregated before they are assigned to the individual units of product. The top section provides information about the job. The second section shows the costs as they are recorded for the job. A control account is an account in the general ledger that summarizes a set of subsidiary ledger accounts. [assigned exercises: 7-17, 7-18: assign costs in a job cost system. The basic idea of product costing in the cost accounting system is for the cost flows to follow the physical flows of the resources that are combined to produce the final product or service. The job is considered sold and sales revenue recognized. There are three inventory accounts for a manufacturing firm: (1) direct materials inventory, (2) work-in-process inventory, and (3) finished goods inventory.
