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Activity 1 - Job Order Vs Process Costing
Activity 1 - Job Order Vs Process Costing
Activity 1 - Job Order Vs Process Costing
4. The primary difference between journal entries for process costing and job
order costing lies in how costs are accumulated and assigned to products or
services:
Accumulation of Costs:
Process Costing: Costs are accumulated by process or department. Entries
typically involve recording the direct materials, direct labor, and manufacturing
overhead incurred in each production department.
Job Order Costing: Costs are accumulated by job or specific order. Entries
involve recording the direct materials, direct labor, and overhead incurred for
each unique job or project.
Cost Assignment:
Frequency of Entries: