Managerial Accounting notes

This is one of the first practice problem Professor Alvarado did in her class we had to journal entry the units used in production.

Job Order Costing and Analysis Questions 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between factory overhead cost and job or job lot are necessary. Also, since job order cost accounting is a perpetual system, we need to estimate a predetermined overhead rate to compute (perpetual) inventory costs. This estimated amount also helps job order companies determine prices on a timely basis. 2. Sev...

Job Order Costing and Analysis Questions 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between factory overhead cost and job or job lot are necessary. Also, since job order cost accounting is a perpetual system, we need to estimate a predetermined overhead rate to compute (perpetual) inventory costs. This estimated amount also helps job order companies determine prices on a timely basis. 2. Sev...

This is one of the first practice problem Professor Alvarado did in her class we had to journal entry the units used in production.