assigning indirect costs to specific job is completed by

Distinguish between job costing and process costing.We use Custom Furniture Company as an example throughout the chapter to explain how a job costing system works and to provide information that will address Dan’s concerns. No problem, I’ll have the information for you by the end of the day. I would also like to see the gross profit generated by each table. It would be helpful to break these costs out for direct materials, direct labor, and manufacturing overhead. Let’s start by looking at actual product costs for the three costliest tables produced in May. I can pull together the information for you. We use a job cost accounting system that tracks costs for each table you produce. Have you compared the actual cost of each table with your original estimates? I’m not sure why this is happening, especially since we price our furniture 70 percent above estimated production costs.īasing prices on estimated costs is a good approach, but it only works if your estimates are accurate. Leslie, last month’s income statement shows we are struggling to make a decent profit. zip file containing this book to use offline, simply click here. You can browse or download additional books there. More information is available on this project's attribution page.įor more information on the source of this book, or why it is available for free, please see the project's home page.

Additionally, per the publisher's request, their name has been removed in some passages. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed. Normally, the author and publisher would be credited here. This content was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz in an effort to preserve the availability of this book. See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms. This book is licensed under a Creative Commons by-nc-sa 3.0 license.

Assigning indirect costs to specific job is completed by