Understanding Job Costing and Process Costing in Accounting

School: Rutgers University - Course: ACCOUNT 275 - Subject: Accounting

Job Costing & Process Costing Job Costingeach job is distinct, unique (think events business, aircraft manufacturing) Process Costingused for mass production of similar products (food products, clothing) Review: Actual Costing= actual cost rate * actual quantitywe will be discussi Normal= budgeted cost rate * budgeted quantity (Budgeted) Actual CostAllocated CostBudget Cost Actual QuantityActual QuantityBudget Quantity Actual MOH rateBudget MOH rateBudget MOH rate Total Actual $Total Allocated $Total B MOH $ 3 Methods to Adjust for Overapplied & Underapplied OH Adjusted Allocation go back and recalculate all allocations with actual allocate rate Prorationdifference allocated between WIP, FG, and COGS based on amounts Write-Offdifference written off to COGS MOHxx COGSxx

ing these terms in connection to the allocation of indirect costs => MOH