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  • Ma Ku 2.2

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    GT WILSN
    7 views12 pages
    1) The document compares and contrasts job order costing and process costing systems. Job order costing assigns costs to individual jobs or orders while process costing assigns costs to batches of products. 2) Under job order costing, manufacturing overhead is assigned to Work in Process (WIP) and Finished Goods (FG) inventory accounts based on direct labor hours. Under process costing, manufacturing overhead is assigned ratably to each unit as it moves through the production process. 3) The document provides journal entries examples for recording manufacturing costs under each system, with debits to Work in Process inventory and credits to Manufacturing overhead for job order costing, and periodic debits to inventory accounts and credits to

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    MA KU 2.2

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    1) The document compares and contrasts job order costing and process costing systems. Job order costing assigns costs to individual jobs or orders while process costing assigns costs to batches of products. 2) Under job order costing, manufacturing overhead is assigned to Work in Process (WIP) and Finished Goods (FG) inventory accounts based on direct labor hours. Under process costing, manufacturing overhead is assigned ratably to each unit as it moves through the production process. 3) The document provides journal entries examples for recording manufacturing costs under each system, with debits to Work in Process inventory and credits to Manufacturing overhead for job order costing, and periodic debits to inventory accounts and credits to

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    7 views12 pages

    Ma Ku 2.2

    Uploaded by

    GT WILSN
    1) The document compares and contrasts job order costing and process costing systems. Job order costing assigns costs to individual jobs or orders while process costing assigns costs to batches of products. 2) Under job order costing, manufacturing overhead is assigned to Work in Process (WIP) and Finished Goods (FG) inventory accounts based on direct labor hours. Under process costing, manufacturing overhead is assigned ratably to each unit as it moves through the production process. 3) The document provides journal entries examples for recording manufacturing costs under each system, with debits to Work in Process inventory and credits to Manufacturing overhead for job order costing, and periodic debits to inventory accounts and credits to

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 12

    3

    1
    2

    3
    4
    (Job Order Cost System)

    1 2

    DM1 DM2
    DL1 DL2
    OH1 OH2
    (Process Cost System)

    DM
    DL0 DL1 DL2 DL3
    OH0 OH1 OH2 OH3
    Job Order Cost System
    Process Cost System
    (Job Order Cost System)
    1

    DM1
    DL1
    OH1
    M-cost WIP FG COGS

    DM
    Beginning Beginning
    DL Unit
    Ending Ending
    OH sales
    M-cost WIP FG COGS

    DM
    Beginning Beginning
    DL Unit
    Ending Ending
    OH sales

    1)
    Dr.
    Cr.
    2)
    Dr.
    Cr.
    M-cost WIP FG COGS

    DM Beginnin Beginnin
    DL g g Unit
    OH Ending Ending sales

    3)
    Dr.
    Cr.
    4) OH
    Dr.
    Cr.
    Overhead

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