Order Systems Design Assignment

Order Systems Design Assignment
1 Distinguish between process
costing and job-order costing,
and identify the production or
service processes that fit with
each costing method.
2 Recognize the flow of costs
thro ugh a job-order costing
system.
3 Compute predetermined
over head rates, and explain
why esti mated overhead
costs (rather than actual
overhead costs) are used in
the costing process.
4 Record the journal entries
that reflect the flow of costs
in a job-order costing system.
5 Apply overhead cost to work in
process using a predetermined
overhead rate.
6 Prepare schedules of cost of
goods manufactured and cost
of goods sold.
7 Compute underapplied or
overapplied overhead cost,
and prepare the journal entry
to close the balance in
manufacturing overhead to
the appropriate accounts.
8 (Appendix 5A) Explain the
implications of basing the
predetermined overhead rate
on activity at full capacity
rather than on estimated
activity for the period.
Order Systems Design Assignment
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