15: Instructor Resources- Available with Login
- Page ID
- 65665
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 15.2: Characteristics of Job Order Costing
- This page explains the cost accumulation model in companies, detailing the matching of costs to the physical flow of products, including raw materials, work in process, and finished goods. It discusses various accounting systems—job costing, batch production, and process costing—and provides industry examples to illustrate these concepts.
- 15.3: Subsidiary Ledgers Needed for Job Order Costing
- This page explains that a subsidiary ledger is a supplementary ledger that offers detailed data for a control account, enhancing financial reporting. A primary example is Accounts Receivable, which summarizes amounts due from customers while detailing individual accounts in the subsidiary ledger.
- 15.4: Job Costing Process with Journal Entries
- This page explains job costing, a system for tracking costs on individual jobs in sectors like construction and healthcare, using Creative Printers as an example. It details July's transactions, including material, labor, and overhead costs, and profitability analysis. The page also covers financial management of job costs for specific jobs, highlighting discrepancies between actual and applied overhead.
- 15.5: Actual Vs. Applied Factory Overhead
- This page explains overhead costs as indirect expenses not directly linked to specific jobs, typically allocated using a predetermined overhead rate (POHR). This method helps in estimating job costs efficiently since overhead is incurred unevenly. The POHR is derived from estimated total overhead costs divided by an estimated activity base. It highlights the difference between actual overhead expenses and applied overhead, which often leads to necessary adjustments in financial records.
- 15.6: Under- or Over-applied Overhead
- This page explains predetermined overhead rates and their application using estimated costs. It discusses the consequences of discrepancies between applied and actual overhead, leading to over-applied or under-applied overhead. An example with Creative Printers demonstrates how to adjust Cost of Goods Sold in these cases, noting that companies typically prefer this method over adjusting individual inventory accounts for minor corrections to simplify the accounting process.
- 15.7: Accounting in the Headlines
- This page discusses Pizza Studio's customizable pizza model akin to Chipotle and Subway, with pizzas priced at $7.99. Founded in 2012, the chain is expanding to nearly 25 locations and plans further franchises. Franchisees face a decision between job-costing and process costing based on the nature of orders. If Pizza Studio ventures into the grocery sector with frozen pizzas, process costing may be more suitable due to the product's standardization.