Cost Accounting: Job Costing, Process Costing, ABC & Standar

Compare manufacturing financial statements with those of merchandisers, noting three inventory accounts—raw materials, work in process, finished goods—and the cost of goods manufactured and sold.

This demonstration on job costing calculates actual overhead of 80,000, allocates 64,000 to jobs at 8 per direct labor hour, and shows under-allocated overhead.

The lecture demonstrates calculating a predetermined overhead rate for job order costing system in cost accounting, applying overhead by decorator hours, and noting under or overapplied overhead with journal entry.

Examine Farrukh Stationery Inc.'s job costing by recording January transactions in Excel, posting to general ledger, and updating WIP and finished goods ledgers; prepare January income statement and balance sheet.

Examine how a process costing system assigns costs to mass-produced products by tracking costs through machining and assembly departments, using equivalent units of production and the weighted average method.

Apply process costing to compute equivalent units and the total cost assigned for the 9000 units completed, using materials and conversion costs from a CMA exam example.

Apply activity based costing to allocate overhead by calculating cost driver rates for pools such as purchasing, storing, machining, and supervision, then assign costs to direct materials and labor.

Distinguish standard costs from budget costs and learn to set standard costs for material, labor, and overhead, then analyze variances between actual and standard costs.

Conclude this course and add a course completion certificate to your professional development portfolio, boosting your future career; store the course description and certificate in your personal professional development folder.