job order and process costing job order custom/built to order products house cost = direct labor +...
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Job Order and Process Costing Job Order
Custom/built to order products House
Cost = direct labor + direct materials + overhead applied
Process Products priced the same
BUS 2102 textbooks Bushel of soybeans
Cost = total manufacturing cost/total units
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Job Order and Process Costing Pricing
ER visit Bagels Aircraft carrier Dent car door Box of paper clips Charleston newspaper
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Job Order and Process Costing Job Order
Overhead Cost Track actual overhead or, Guess (normal costing using estimated overhead)
Overhead rate = Estimated Overhead/Estimated Units Estimating Overhead Units: labor and machine
Applying Overhead Labor hours (lots of peons – lawyers) Machine hours (highly mechanized – paper clip factory) Hours x Overhead Rate = Overhead Applied
Under/Over Applied Less busy: ____ applied Overhead costs lower than expected: _____ applied Cost of Goods Sold is adjusted for over/under applied
overhead
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Job Order and Process Costing
Process Costing Equivalent Units Weighted Average
Method (combines Beginning WIP and current period units/costs)
Costs = Beg WIP costs + Cost this Period
Total Units = Units Completed + Ending WIP Equivalent Units
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Job Order and Process Costing
Total Costs / Total Units = Cost Per Unit
Amount to Finished Goods = Finished Units x Unit Cost
Ending WIP = Ending WIP equivalent units x unit cost
Example: Exercise 6-26: Page 246
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Job Order and Process Costing Job Order
Job Cost Sheets Total for all jobs equals Work In Process