ACC 222 Job-Order Costing

Materials requisition form

A materials requisition form identifies the materials drawn from the storeroom that must then be charged to each job.

time ticket

Each employee who works on the job uses a time ticket to record the time spent.

absorption costing

In absorption costing, all manufacturing costs, both fixed and variable, are assigned to units of product—units are said to fully absorb manufacturing costs. Conversely, all nonmanufacturing costs are treated as period costs and they are not assigned to units of product.----JOB ORDER COSTING IS A TYPE OF ABSORBTION COSTING

underapplied overhead

When a company applies less overhead to production than it actually incurs, it creates what is known as underapplied overhead.

subsidiary ledger

When all of a company's job cost sheets are viewed collectively they form what is known as a subsidiary ledger.

overapplied overhead

When it applies more overhead to production than it actually incurs, it results in overapplied overhead.

manufacturing costs

direct labor, direct material and manufacturing overhead

Bill of Materials

it lists the direct materials required to manufacture each unit of product

Y=a + bX

the cost formula used to compute the numerator of the POHR, the numerator stands for the total estimated MOH cost

job-ordered costing

used in situations where many different products each with individual and unique features are produced each period. used in service industries as well such as law firms,hospitals and ad agencies ex. Levi's makes different types of jeans for both men and women during a month

job cost sheet

used to keep track of the materials, labor, and manufacturing overhead costs charged to each job.