BUS 215 Chapter Notes - Chapter 3: Direct Labor Cost, Finished Good
Document Summary
Lo 1: understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs. A company"s product costs flow through 3 inventory accounts on the bs and then to. Dl cost is added to wip and mo cost is applied to wip by multiplying predetermined overhead rate by actual quantity of the allocation base consumed by each job. Completed units not yet sold to customers. The amount transferred from wip to finished goods is referred to as the cost of goods manufactured, which includes the manufacturing costs associated with units of product that were finished during the period. As jobs are sold, their costs are transferred from finished goods to cogs. Until, this everything except selling and admin is recorded on bs until it all gets. Ruger corp buys raw materials on account transferred and expensed on is.
