Accounting Chapters 17&18

Front 1

An accounting system that accumulates costs by job. used by companies that manufacture unique products or provide specialized services

Back 1

Job Order Costing System

Front 2

The production of a unique product or specialized service. May be one unit or a batch of units.

Back 2

Job

Front 3

An accounting system that accumulates costs by process. used by companies that manufacture identical units through a series of uniform production steps or processes

Back 3

Process costing system

Front 4

a document that shows the direct materials, direct labor, and manufacturing overhead costs for an individual

Back 4

Job Cost Record

Front 5

Request for the transfer of raw materials to the production floor

Back 5

Materials requisition

Front 6

a record used to assign direct labor cost to specific jobs

Back 6

Labor time record

Front 7

Estimated overhead cost per unit of the allocation base, calculated at the beginning of the accounting period. total estimated overhead costs
--------------------------------------------
Total estimated quantity of the
overhead allocation base

Back 7

Predetermined overhead allocation rate

Front 8

A denominator that links indirect costs to cost objects. ideally, the allocation base is the primary cost driver of the indirect costs

Back 8

Allocation Base

Front 9

The primary factor that causes a cost to increase or decrease

Back 9

Cost Driver

Front 10

Occurs when the actual manufacturing overhead costs are more than allocated manufacturing overhead costs

Back 10

Under-allocated overhead

Front 11

occurs when the actual manufacturing overhead costs are less than allocated manufacturing overhead costs

Back 11

Overallocated overhead

Front 12

An accounting system that accumulates costs by job. used by companies that manufacture unique products or provide specialized services

Back 12

Job Order Costing System

Front 13

One of a series of steps in manufacturing production, usually associated with making large quantities of similar items

Back 13

Process

Front 14

An accounting system that accumulates costs by process. used by companies that manufacture identical units through a series of uniform production steps or processes

Back 14

Process costing System

Front 15

Used to measure the amount of materials added to or work done on partially completed units and expressed in terms of full completed units

Back 15

Equivalent units of productions (EUP)

Front 16

the cost to convert raw materials into finished goods.

Direct labor +Manufacturing overhead

Back 16

Conversion Costs

Front 17

A report prepared by a processing department for equivalent units of production, production costs and the assignment of those costs to the completed and in process units

Back 17

Production cost report

Front 18

Costs that were incurred in a previous process and brought into a later process as part of the product's cost

Back 18

Transferred in costs

Front 19

Determines the average cost of equivalent units of production by combining beginning inventory costs with current period costs

Back 19

weighted-Average method

Front 20

Determines the cost of equivalent units of production by accounting for beginning inventory costs separately from current period cost it assumes the first units started in the production process are the first units completed and sold

Back 20

First in- first out method