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Job-Order Costing

Raju Rathipelli @ RK Business School, Hyderabad

Managerial Accounting

The manufacturing of goods done in discrete batches. Under applied
Counts costs for units of product manufactured. Over applied
A list of material is required to build a product. Job-order
A form prepared for each job that records the materials, labor, and overhead costs charged to the job. Time ticket
Is used to record the amount of hours an employee worked during a pay period. Semi-finished goods
Is a measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects. Cost driver
The amount by which an overhead has been over absorbed. Job cost sheet
The estimated overhead applied during the period is less than the actual overhead. Job-order costing
A factor that can causes a change in the cost of an activity. Allocation base
Is a rate used to charge overhead cost to jobs in production. Bill of materials
Expenditure incurred in producing one unit of a good or service. Cost of goods sold
A material that is used in the primary production. Predetermined rate
Refers to the investment in goods that are currently in production.  Allocation base
Partly finished goods. Absorption costing
Completely manufactured products which are ready for sale. Unit cost
Refers to the costs directly associated with creating a product. Idle time
Expensing all costs related to manufacturing of a specific product. Raw material
Is the source document for the transfer of raw material from Raw-Material Inventory to Work n- Process Inventory. Finished goods
Non-productive time of employees or machines. Work-in-process
Is the basis upon which an entity allocates its overhead costs. Material requisition form

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