Chapter 4 job order costing

Time ticket

A document that is used to record the amount of time and employee spends on various activities.

Materials requisition form

A document that specifies the type and quantity of materials to be drawn from the store and that identifies the job that will be charge for the cost of those materials.

Plant wide overhead rate

A single predetermined overhead rate that is used throughout a plant.

Absorption costing

All manufacturing cost both fixed and variable are assigned to units of product. Units are said to be fully absorb manufacturing costs.

Raw materials

Any material that goes into the final product.

Normal cost system

Coffee system in which overhead costs are applied to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job.

Cost driver

Factors such as machine hours that occupied your time her flight hours that causes overhead costs.

Job cost sheet

Form prepared for a job that records the materials labor and manufacturing overhead cost charge to a job.

Job order costing

Hey costing system used in situations were many different products jobs or services are produced each period.

Under applied overhead

No amount by which the overhead cost actually heard exceeds the amount wired to the jobs during the period.

Overhead application

Process of charging manufacturing overhead cost to job cost sheets.

Over applied overhead

The amount by which overhead cost applied to the job exceeds the amount of overhead cost actually occurred during a period.

Multiple predetermined overhead rate

The costing system with multiple overhead cost pools and the different predetermined overhead rate for each cost cool, rather than a single predetermined overhead rate for the entire company.

Bill of material

The document that shows the quantity of each type of direct material required to make the product.

Cost of goods manufactured

The manufacturing costs associated with the goods that were finished during the period.

Work in process

Units of product that are only partially complete and will require further work before they're ready for sale for the customer.

Finished goods

Units of product to happen but not yet sold customer.