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Mizzou ACCTCY 2037 - Manufacturing Operations Continued

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Chapter 15 Manufacturing Operations ContinuedFlow of Products for a Manufacturing CompanyDirect Materials, Direct Labor, Factory Overhead Goods In Process InventoryJob Order Costing StepsSource DocumentsJob Order Cost sheets (individual jobs)Materials requisition formsLabor ticket timesFactory overhead reportsApplication of raw material costsDirect materials recorded in goods in process inventoryIndirect materials recorded in factory overheadApplication of factory labor costsDirect labor recorded in goods in processIndirect labor recorded in factory overheadApplication of Factory OverheadActual overhead (not known in total until end of period) added to factory overheadApplied overhead (based on pre-determined rate) subtracted from factory overhead and added to good in processCompletion of JobsIncrease finished goods and decrease goods in processSale of ProductIncrease Cash or Accounts Receivable and increase Sales Revenue(perpetual inventory system) Increase Cost of Goods Sold and decrease Finished GoodsHandling Over applied or Under applied OverheadClose overhead balance to cost of goods soldEstimated Manufacturing Overhead: the total estimated amount of manufacturing overhead costs estimated at the beginning of the accounting periodApplied Manufacturing Overhead: the total amount of manufacturing overhead costs charged to production during the accounting periodActual Manufacturing Overhead: the total actual costs incurred during the accounting period. Not known until end of the periodFactory Overhead ItemsSupervisors salaries (fixed)Maintenance Workers (fixed)Factory Depreciation (fixed)Power (variable)Accy 2037 1st Edition Lecture 6Outline of Last Lecture I. Types of Manufacturing ProcessesOutline of Current Lecture II. Flow of products in a manufacturing companyIII. Job Order Costing StepsCurrent Lecture Chapter 15 Manufacturing Operations Continued Flow of Products for a Manufacturing Company- Direct Materials, Direct Labor, Factory Overhead Goods In Process Inventory Job Order Costing Steps- Source Documentso Job Order Cost sheets (individual jobs)o Materials requisition formso Labor ticket timeso Factory overhead reports- Application of raw material costso Direct materials recorded in goods in process inventoryo Indirect materials recorded in factory overhead- Application of factory labor costso Direct labor recorded in goods in process o Indirect labor recorded in factory overheadThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Application of Factory Overheado Actual overhead (not known in total until end of period) added to factory overheado Applied overhead (based on pre-determined rate) subtracted from factory overhead and added to good in process- Completion of Jobso Increase finished goods and decrease goods in process- Sale of Producto Increase Cash or Accounts Receivable and increase Sales Revenueo (perpetual inventory system) Increase Cost of Goods Sold and decrease Finished Goods- Handling Over applied or Under applied Overheado Close overhead balance to cost of goods sold Estimated Manufacturing Overhead: the total estimated amount of manufacturing overhead costs estimated at the beginning of the accounting period Applied Manufacturing Overhead: the total amount of manufacturing overhead costs charged to production during the accounting period Actual Manufacturing Overhead: the total actual costs incurred during the accounting period. Not known until end of the period Factory Overhead Items- Supervisors salaries (fixed)- Maintenance Workers (fixed)- Factory Depreciation (fixed)- Power


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