COMM-2016EL Chapter Notes - Chapter 6: Cost Driver, Board Foot, Print Job
Document Summary
The most important point is that product costing is an averaging process. The unit cost used for inventory purposes is the result of taking some accumulated cost that has been allocated and dividing it by some measure of production. Job costing and process costing are extremes along a continuum of potential costing systems. Job-cost record (or sheet/order) a document that shows all costs for a particular product, service, or batch of products. As each job begins, a job-cost record is prepared. As units are worked on, entries are made on the record: a file of these records for partially completed jobs provides supporting details for the work-in-progress. Inventory account (wip: a file of completed job-cost records comprises the finished goods inventory account. The job-cost record summarizes information contained on source documents such as: Materials requisitions records of materials issues to particular jobs. Labour time tickets the record of the time a particular direct labourer spends on each job.