ACCT 2230 Chapter 3: Chapter 3.docx

• School: University of Guelph
• Department: Accounting
• Course: ACCT 2230
• Professor: Lynn Carty

Document Summary

A costing method that includes all manufacturing costs direct materials, direct labour, and both variable and fixed overhead. (part of the cost of a finished unit of product) Used in those manufacturing situations where a single, homogeneous product (such as cement or oil) flows in a continuous stream out of the production process. Unit product cost (per litre, kg, bottles) = litres ,kg,bottles. A costing system used in situations where many different products, jobs, or services are produced each period. A record that lists the type and quantity of each major item of the materials required to make a product. 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. A form prepared for each job that records the materials, labour, and overhead costs charged to the job.