by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Production Cost Report?A production cost report identifies the total cost (direct materials, labor, and overhead), of producing a product.A production cost report helps managers answer several important questions: How much does it cost to produce each unit...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Job Order Costing? Job Costing, as the name implies, allows companies to track the revenues and costs of each job. Job costing systems record revenues and costs for unique units of product that can be easily distinguished from other units of the product. This...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Job Order Costing? The job cost sheet reports manufacturing costs for each job. It also serves as a subsidiary ledger for the work-in-process inventory account.Two primary documents track the assignment of material and labor to a Job Cost Sheet: Material...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
How Do you Assign Overhead to the Costs of a Job?The approach to assigning overhead costs to a job changes based upon whether the company is a manufacturer (makes products) or is a service based company. Let’s address assigning Manufacturing Overhead Costs first. How...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
How Do You Allocating Overhead Costs to Products?Job costing assigns overhead costs to a job based upon a predetermined rate, which is calculated as a ratio of total overhead (or a specific pool of overhead) to a specific type of activity (allocation base). Process...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Plantwide Allocation of Costs? The plantwide allocation method uses one predetermined overhead rate to allocate overhead costs. Note: Direct materials and direct labor are easily traced to the product and therefore are not a part of the overhead allocation...
