CH 3

Question 1

Job Order Costing: Type of Product, Approach, Cost Accumulation, Major Cost Report.

Answer 1

• Unique Products
• Customized for customer/client
• Cost accumulated by job, product, or customer
• Job cost sheet for each unique job, project, or customer

Question 2

Process Costing: Type of Product, Approach, Cost Accumulation, Major Cost Report.

Answer 2

• homogenous/identical products
• mass production with standard processes
• cost accumulation by process
• production report for each major production process

Question 3

MOH Normal Costing Procedure

Answer 3

1. Find estimated/budgeted/planned MOH.
2. Find estimated cost driver.
3. Calculated est. MOH rate (est. MOH / est. cost driver)
4. Find applied/allocated MOH (est. MOH rate * actual cost driver)
5. Find actual MOH.
6. Reconcile actual MOH with applied/allocated MOH (underallocated or overallocated).