C8 - Job Order Costing and Process Costing
C8 - Job Order Costing and Process Costing
C8 - Job Order Costing and Process Costing
Selling and
This account includes all Administrative Costs are
goods purchased for charged also against
resale sales revenues in the
income statement
Will the system use historical costs
or standard costs?
Manufacturing
Cost Will the system be a job order or a
Accounting process cost accounting system?
Systems
Will the system be based on full
absorpttion or direct costing of
inventory?
Job Order Costing System
With a job order costing system, costs are assigned to each job.
Calculate Calculate a predetermined overhead rate and use it to assign overhead costs.
Complete Complete a job cost sheet and calculate the average cost per unit of a job.