Management and Organizational Studies 3370A/B Chapter Notes - Chapter 5: One Unit, Accounts Payable, Deutsche Luft Hansa

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3370A/B
• Professor: Bill Dawson

Document Summary

Job-order costing: many different products are produced each period, products are manufactured to order, the unique nature of each order requires tracing or allocating costs to each job, and maintaining cost records for each job, comparison. A document that specifies the type and quantity of materials to be drawn from the storeroom. Identifies the job to which the costs of the materials are to be charged: the form controls the flow of materials into production and also makes entries in the accounting records. Computing predetermined overhead rates: an allocation base, such as direct labour hours, direct labour dollars, or machine hours is used to assign manufacturing overhead to individual, we use an allocation base because. Job-order costing- the flow of costs: the purchase and issue of materials, raw materials are recorded in an inventory account, dr. raw materials inventory, cr. A/p: direct materials issued to a job increase wip and decrease raw materials.