About This Chapter
Job Order Cost System - Chapter Summary and Learning Objectives
In order to perform their job correctly, accounting managers must understand the terminology and concepts involved in job order costing. This chapter gives you the information and examples necessary to understand this system. Our instructors guide short video lessons to help you identify manufacturing and overhead costs. The quizzes that are located in each lesson will help you reinforce the information you've learned. These lessons include information like:
- What job order costing is and how it is important
- How to identify and estimate overhead costs
- The reasons for job cost sheets
- Examples of work-in-process inventory accounts
- The definition of finished goods inventory
- Ways to calculate the cost of goods
- The formula for cost of goods sold
- The difference between over-applied and under-applied overhead
|Job Order Cost System: Purpose, Pros & Cons||Determine the circumstances that are best for using job order costing.|
|Manufacturing Costs of Job Order Cost Systems||Recognize manufacturing overhead costs, and identify direct manufacturing costs.|
|Manufacturing Overhead: Definition, Formula & Examples||Utilize the correct formula to determine manufacturing overhead per unit.|
|Predetermined Overhead Rate: Formula & Example||Outline the process for estimating overhead costs.|
|Job Cost Sheet: Purpose & Characteristics||Identify what job sheets are and their purpose.|
|Work-in-Process Inventory Account: Definition & Example||Explain the work in progress account.|
|Finished Goods Inventory: Calculation & Formula||Investigate the reasons why finished goods inventory may increase or decrease.|
|Cost of Goods: Definition & Calculation||Calculate the costs of goods sold and discuss what the costs of goods is.|
|Balance Sheet Accounts in Job Order Costing||Understand the balance sheet and the terms that are important to it.|
|Cost of Goods Sold on an Income Statement: Definition & Formula||Discover where the cost of goods sold fits on a balance sheet.|
|Job Order Cost System for Service Companies||Identify the correct way to make entries and track costs for service companies.|
|Under- or Over-Applied Manufacturing Overhead||Define under-applied or over-applied overhead and discover how to decide whether or not to allocate them.|
1. Job Order Cost System: Purpose, Pros & Cons
When a custom ordered product is manufactured, a number of costs are accumulated during the production process. In this lesson, you will learn how costs are transferred in a job order costing system.
2. Manufacturing Costs of Job Order Cost Systems
This lesson will discuss manufacturing costs in a job order costing system and demonstrate the proper recording and recognition of manufacturing and period costs through journal entries.
3. Job Cost Sheet: Purpose & Characteristics
In this lesson, we'll explore job cost sheets. We'll learn what they are and why they are used, explore their many different characteristics, and take a look at an example.
4. Work-in-Process Inventory Account: Definition & Example
The work-in-process inventory account allows companies to track the value of their inventory that is in work-in-process. Learn more about the work-in-process inventory account and its components from the example in this lesson.
5. Finished Goods Inventory: Calculation & Formula
This lesson explains what finished goods inventory is, how it is calculated, and the activities that will cause a finished goods inventory to increase or decrease. Examples to illustrate finished goods inventory are provided.
6. Cost of Goods: Definition & Calculation
It takes money to make money. In this lesson, you'll learn about the cost of goods, what it is, what it isn't and how to calculate the costs of goods sold. You'll also have a chance to reinforce your knowledge with a short quiz.
7. Balance Sheet Accounts in Job Order Costing
This lesson reviews job order costing and discusses what a balance sheet is, different accounts on the balance sheet and how to record transactions onto the balance sheet.
8. Job Order Cost System for Service Companies
This lesson discusses the assigning of costs through the job order costing system for service companies. It also illustrates the journal entries required to track these costs.
9. Under- or Over-Applied Manufacturing Overhead
This lesson discusses the application of manufacturing overhead costs and what to do if these costs are over-applied or under-applied costs. It also demonstrates how to adjust the journal entries for this process.
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Other chapters within the Accounting 301: Applied Managerial Accounting course
- Corporate Governance for Managerial Accounting
- Financial Statements & Balance Sheets
- Cost Classifications
- Manufacturing Overhead Cost Allocation
- Process Cost System
- Activity-Based Costing
- Cost-Volume-Profit Analysis
- Decision Making in Managerial Accounting
- Pricing Objectives & Methods
- Budgetary Control
- Standard Costs
- Capital Budgeting
- Statement of Cash Flows
- Financial Statement Analysis
- Software for Managerial Accounting
- Required Assignments for Accounting 301
- Studying for Accounting 301