Job Order Costing

Recognize which firms need a Job Order Cost system versus Process Costing. What type of products need a Job Order Cost approach?

Know the three areas of inventory (WIP, Finished Goods and COGS) where the cost of a job starts and how it flows through the System.

What is a job cost sheet? Whats on it? How do Direct Materials and Direct Labor get recorded? Factory Overhead?

Whats a cost allocation? Predetermined FO rate? Calculate it!

How does the factory overhead account change when actual overhead costs are incurred and when the estimated applied overhead is entered?

Do you the actual and applied overhead differ? When?

What is underapplied factory overhead and over applied factory overhead?

What happens to the balance in the factory overhead account at the end of the year? How does this impact COGS?

What are typical period costs? Do these costs get applied to factory overhead?

Do professionals sometimes used job order costing, like an attorney or doctor, to bill clients?