1. Chapter 4

2. Process Costing Job-Order Costing Company produces many units of a single product for a long time Mass-produced, automated continuous production process. Costs cannot be directly traced to each unit of product. Types of Product-Costing Systems Process costing allocates costs to products by averaging costs over large numbers of nearly identical products

3. Typical process cost applications: v Petrochemical refinery v Paint manufacturer v Paper mill Types of Product-Costing Systems Process Costing Job-Order Costing

4. F Job-shop operations v Products manufactured in very low volumes or one at a time. F Batch-production operations v Multiple products in batches of relatively small quantity. Types of Product-Costing Systems Process Costing Job-Order Costing

5. F Typical job-order cost applications: v Special-order printing v Building construction F Also used in service industry v Hospitals v Law firms Types of Product-Costing Systems Process Costing Job-Order Costing

6. Materials Requisition Form

7. Employee Time Ticket

8. Job Cost Sheet

14. Practice with Overhead Actual manufacturing overhead$340,000 Budgeted machine hours 10,000 Budgeted direct labor hours 20,000 Budgeted direct labor rate $14 Budgeted manufacturing oh $364,000 Actual machine hours 11,000 Actual direct labor hours 18,000 Actual direct labor rate $15 POHR - Machine hours POHR - direct labor hours POHR - direct labor dollars

15. Fisher Company Journal Entries T-Accounts Over/Under-applied Overhead Cost of Goods Manufactured Cost of Goods Sold Income Statement Job-Order System Cost Flows Word Documents

16. Overapplied and Underapplied Manufacturing Overhead - Summary

22. Allocation Account Account Balance (Before Proration) Allocated Manufacturing Overhead Included in Each Account Balance (Before Proration) Allocated Manufacturing Overhead Included in Each Account Balance as a Percent of Total Proration of $135,000 of Underallocated Manufacturing Overhead Account Balance (After Proration) Work in Process control $ 50,000 $ 16,2001.50%0.015 x $135,000= $ 2,025 $ 52,025 Finished goods control 75,000 31,3202.90%0.029 x $135,000= 3,915 78,915 Cost of goods sold 2,375,000 1,032,48095.60%0.956 x $135,000= 129,060 2,504,060 Total $2,500,000 $ 1,080,000100.00%$135,000$2,635,000