BUS 108 Chapter Notes - Chapter 5: Direct Labor Cost, Subledger, Timesheet
Document Summary
Chapter 5 traditional product cost systems: job order cost. Legend: yellow= book grey= learning objectives teal= examples. Product cost control: important for production cost, product cost control, income determination, valuation of ending work in process and finished goods inventories. 1. to distinguish the characteristics of a job order cost system from those of a process cost system: job-order costing an overview. Job-order cis a product costing system is used with accumulated product costs. Different types of products, jobs, or batches are produced within a period. Examples of industries in which job-order costing is used include shipbuilding, construction, hospitals, special order printing, law firms, cpa firms, and movie studios. Ex: single scoreboard of a football game, to 1,000 living room sets made. Unit product cost: is computed by dividing total manufacturing costs of a job by the number of units produced. (tmc/# units produced)
