ADMN 3021H Chapter Notes - Chapter 6: Finished Good

• School: Trent University
• Department: Business Administration
• Course: ADMN 3021H
• Professor: Malcolm Mac Taggart

Document Summary

Similarities between job-order and process costing: both systems assign material, labour, and overhead costs to products and they provide a mechanism for computing unit product costs, both systems use the same manufacturing accounts, including manufacturing. Overhead, raw materials, work in process, and finished goods: the flow of costs through the manufacturing accounts is basically the same in both systems. Differences between job-order and process costing: process costing is used when a single product is produced on a continuing basis or for a long period of time. Job-order costing is used when many different jobs having different production requirements are worked on each period: process costing systems accumulate costs by department. Job-order costing systems accumulated costs by individual jobs: process costing systems use department production reports to accumulate costs. Job-order costing systems use job cost sheets to accumulate costs: process costing systems compute unit costs by department. Job-order costing systems compute unit costs by job on the job cost sheet.