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Accounting, 21st Edition
Warren Reeve Fess

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Ô  1. Describe the differences between ÷  .

.  managerial and financial accounting.

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4. Evaluate the organizational  role of management accountants. Define and illustrate materials. 2. . 3. Describe accounting systems used by manufacturing businesses. factory labor. and factory overhead costs.

. Ô  ½. Describe and prepare summary journal entries for a job order cost accounting system. 8. Diagram the flow of costs for a service business that uses a job order cost accounting system. 7. Use job order cost information for decision making.

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Financial and Managerial Accounting Financial Accounting Managerial Accounting Users of Accounting Information u              .

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COST EX©ENSE ASSET EX©ENSE .

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Cost Accounting Systems Job order cost system ©rovides a separate record for the cost of each quantity of product that passes through the factory.            . ©rocess cost system System in which costs are accumulated for each of the departments or processes within the factory.

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Goodwell ©rinters Income Statement For the Month Ended December 31.350 .000 Cost of goods sold 20. expenses: ales salaries expense $2.150 ross profit $ 7. 2006 ales $28. expenses 3.500 Total selling and admin.000 Office salaries expense 1.500 ncome from operations $ 4.850 elling and admin.

Overview of Job Order Costing Costs & Expenses ©roduct Costs Balance Sheet Materials Materials ©urchases Inventory Direct Work in      Labor ©rocess    Inventory Factory Overhead Finished Goods Inventory .

Overview of Job Order Costing Costs & Expenses ©roduct Costs Balance Sheet Materials Materials ©urchases Inventory ©eriod costs flow Direct directly to the Work in Labor income statement ©rocess Inventory Factory Overhead Income Statement Finished Goods Cost of ©eriod Costs Inventory Goods Sold Selling and Selling and Administrative Administrative .

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Flow of Manufacturing Costs   /        DM DM COGM COGM    IM DL FOHA     u  / .

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Flow of Manufacturing Costs   /        DM DM COGM COGM SOLD    IM DL FOHA     u  / .

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Job Order Systems for ©rofessional Service Businesses / .

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