Chap 003 Cost

Systems Design: Job-Order Costing
Chapter 3
2010 The McGraw-Hill Companies, Inc.
Learning Objective 1
Distinguish between process costing and joborder costing and identify companies that would use each costing method.
McGraw-Hill/Irwin
Slide 2
Types of Product Costing Systems
Process Costing
Job-order Costing
A company produces many units of a single product.

One unit of product is indistinguishable from other units of product.
The identical nature of each unit of product enables assigning the same average cost per unit.
Slide 3
McGraw-Hill/Irwin
Process Costing
Job-order Costing
A company produces many units of a single product. Example companies:
1.One Weyerhaeuser (paper manufacturing) from unit of product is indistinguishable units Aluminum of product. 2.other Reynolds (refining aluminum ingots) 3.The Coca-Cola (mixing bottling identical nature and of each unit beverages) of product enables
assigning the same average cost per unit.
McGraw-Hill/Irwin
Slide 4
Process Costing
Job-order Costing
Many different products are produced each period.

Products are manufactured to order. The unique nature of each order requires tracing or allocating costs to each job, and maintaining cost records for each job.
McGraw-Hill/Irwin
Slide 5
Process Costing
Job-order Costing
Example companies: are manufactured to order. 1.Products Boeing (aircraft manufacturing) unique nature of each order requires tracing or 2.The Bechtel International (large scale construction) costs to each job, and maintaining cost 3.allocating Walt Disney Studios (movie production)
records for each job.
Many different products are produced each period.
McGraw-Hill/Irwin
Slide 6
Comparing Process and Job-Order Costing

Job-Order Number of jobs worked Cost accumulated by Average cost computed by Many Individual Job Job Process Single Product Department Department
McGraw-Hill/Irwin
Slide 7
Quick Check
Which of the following companies would be likely to use job-order costing rather than process costing?
a. Scott Paper Company for Kleenex. b. Architects. c. Heinz for ketchup. d. Caterer for a wedding reception. e. Builder of commercial fishing vessels.
McGraw-Hill/Irwin
Slide 8
Quick Check
Which of the following companies would be likely to use job-order costing rather than process costing?
a. Scott Paper Company for Kleenex. b. Architects. c. Heinz for ketchup. d. Caterer for a wedding reception. e. Builder of commercial fishing vessels.
McGraw-Hill/Irwin
Slide 9
Identify the documents used in a job-order costing system.
McGraw-Hill/Irwin
Slide 10
Job-Order Costing An Overview
Direct Materials
Job No. 1
Direct Labor Job No. 2 Job No. 3
Manufacturing Overhead
Charge direct material and direct labor costs to each job as work is performed.
Slide 11
McGraw-Hill/Irwin
Indirect Manufacturing Costs

Manufacturing Overhead, including indirect materials and indirect labor, are allocated to all jobs rather than directly traced to each job.
Slide 12
Direct Materials
Job No. 1
Direct Labor Job No. 2 Job No. 3
Manufacturing Overhead
McGraw-Hill/Irwin
The Job Cost Sheet

PearCo Job Cost Sheet
Job Number A - 143 Department B3 Item Wooden cargo crate Direct Materials Req. No. Amount Date Initiated 3-4-09 Date Completed Units Completed
Direct Labor Manufacturing Overhead Ticket Hours Amount Hours Rate Amount
Cost Summary Direct Materials Direct Labor Manufacturing Overhead Total Cost Unit Product Cost
Units Shipped Date Number Balance
McGraw-Hill/Irwin
Slide 13
Measuring Direct Materials Cost
Will E. Delite
McGraw-Hill/Irwin
Slide 14
Measuring Direct Materials Cost
McGraw-Hill/Irwin
Slide 15
Measuring Direct Labor Costs
McGraw-Hill/Irwin
Slide 16
Job-Order Cost Accounting
McGraw-Hill/Irwin
Slide 17
Compute predetermined overhead rates and explain why estimated overhead costs (rather than actual overhead costs) are used in the costing process.
McGraw-Hill/Irwin
Slide 18
Why Use an Allocation Base?

Manufacturing overhead is applied to jobs that are in process. An allocation base, such as direct labor hours, direct labor dollars, or machine hours, is used to assign manufacturing overhead to individual jobs.
We use an allocation base because: 1.It is impossible or difficult to trace overhead costs to particular jobs. 2.Manufacturing overhead consists of many different items ranging from the grease used in machines to production managers salary. 3.Many types of manufacturing overhead costs are fixed even though output fluctuates during the period.
McGraw-Hill/Irwin
Slide 19
Manufacturing Overhead Application

The predetermined overhead rate (POHR) used to apply overhead to jobs is determined before the period begins.
Estimated total manufacturing overhead cost for the coming period Estimated total units in the allocation base for the coming period
POHR =
Ideally, the allocation base is a cost driver that causes overhead.

McGraw-Hill/Irwin
Slide 20
The Need for a POHR

Using a predetermined rate makes it possible to estimate total job costs sooner.
Actual overhead for the period is not known until the end of the period.
McGraw-Hill/Irwin
Slide 21
Determining Predetermined Overhead Rates

Predetermined overhead rates are calculated using a three-step process.
Estimate the level of production for the period.
Estimate total amount of the allocation base for the period.
Estimate total manufacturing overhead costs.
POHR =
McGraw-Hill/Irwin
Slide 22
Application of Manufacturing Overhead
Based on estimates, and determined before the period begins.
Overhead applied = POHR Actual activity

Actual amount of allocation is based upon the actual level of activity (normal costing system).
McGraw-Hill/Irwin
Slide 23
Overhead Application Rate

POHR =
Estimated total manufacturing overhead cost for the coming period
Estimated total units in the allocation base for the coming period
$640,000 POHR = 160,000 direct labor hours (DLH)
POHR = $4.00 per DLH For each direct labor hour worked on a particular job, $4.00 of factory overhead will be applied to that job.
McGraw-Hill/Irwin
Slide 24
McGraw-Hill/Irwin
Slide 25
McGraw-Hill/Irwin
Slide 26
Interpreting the Average Unit Cost

The average unit cost should not be interpreted as the costs that would actually be incurred if an additional unit was produced.
Fixed overhead would not change if another unit was produced, so the incremental cost of another unit is something less than $118.
McGraw-Hill/Irwin
Slide 27
Quick Check
Job WR53 at NW Fab, Inc. required $200 of direct materials and 10 direct labor hours at $15 per hour. Estimated total overhead for the year was $760,000 and estimated direct labor hours were 20,000. What would be recorded as the cost of job WR53?
a. $200. b. $350. c. $380. d. $730.
McGraw-Hill/Irwin
Slide 28
Quick Check
Job WR53 at NW Fab, Inc. required $200 of direct materials and 10 direct labor hours at $15 per hour. Estimated total overhead for the year was $760,000 and estimated direct labor hours were 20,000. What would be recorded as the cost of job WR53?
a. $200. b. $350. c. $380. d. $730.
POHR = $760,000/20,000 hours
$38
Direct materials $200 Direct labor $15 x 10 hours $150 Manufacturing overhead $38 x 10 hours $380 Total cost $730
Slide 29
McGraw-Hill/Irwin
Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.
McGraw-Hill/Irwin
Slide 30
Job-Order Costing Document Flow Summary
A sales order is the basis of issuing a production order.
A production order initiates work on a job.
McGraw-Hill/Irwin
Slide 31
Materials used may be either direct or indirect.
Direct materials
Job Cost Sheets
Materials Requisition Indirect materials Manufacturing Overhead Account
McGraw-Hill/Irwin
Slide 32

An employees time may be either direct or indirect.
Direct Labor
Job Cost Sheets
Employee Time Ticket Indirect Labor Manufacturing Overhead Account
McGraw-Hill/Irwin
Slide 33

Materials Requisition Indirect Material
Other Actual OH Charges
Manufacturing Overhead Account
POHR rate used to apply overhead
Job Cost Sheets
Employee Time Ticket

McGraw-Hill/Irwin
Indirect Labor
Slide 34
Learning Objectives 4 and 7

Understand the flow of costs in a joborder costing system and prepare appropriate journal entries to record costs.
Use T-accounts to show the flow of costs in a job-order costing system.
McGraw-Hill/Irwin
Slide 35
Job-Order Costing: The Flow of Costs

The transactions (in Taccount and journal entry form) that capture the flow of costs in a job-order costing system are illustrated on the following slides.
McGraw-Hill/Irwin
Slide 36
The Purchase and Issue of Raw Materials

Raw Materials
Material Direct Purchases Materials Indirect Materials
Work in Process (Job Cost Sheet)

Direct Materials
Mfg. Overhead
Actual Applied Indirect Materials
McGraw-Hill/Irwin
Slide 37
Cost Flows Material Purchases

Raw material purchases are recorded in an inventory account.
McGraw-Hill/Irwin
Slide 38
Cost Flows Material Usage

Direct materials issued to a job increase Work in Process and decrease Raw Materials. Indirect materials used are charged to Manufacturing Overhead and also decrease Raw Materials.
McGraw-Hill/Irwin
Slide 39
The Recording of Labor Costs

Salaries and Wages Payable
Direct Labor Indirect Labor

Direct Materials Direct Labor
Mfg. Overhead
Actual Indirect Materials Indirect Labor
McGraw-Hill/Irwin
Applied
Slide 40
The Recording of Labor Costs

The cost of direct labor incurred increases Work in Process and the cost of indirect labor increases Manufacturing Overhead.
McGraw-Hill/Irwin
Slide 41
Recording Actual Manufacturing Overhead


Direct Materials Direct Labor
Mfg. Overhead
Actual Applied Indirect Materials Indirect Labor Other Overhead
McGraw-Hill/Irwin
Slide 42
Recording Actual Manufacturing Overhead

In addition to indirect materials and indirect labor, other manufacturing overhead costs are charged to the Manufacturing Overhead account as they are incurred.
McGraw-Hill/Irwin
Slide 43
Apply overhead cost to Work in Process using a predetermined overhead rate.
McGraw-Hill/Irwin
Slide 44
Applying Manufacturing Overhead


Direct Materials Direct Labor Overhead Applied
Mfg. Overhead
Actual Applied Indirect Materials Overhead Indirect Applied to Labor Work in Other Process Overhead
McGraw-Hill/Irwin
If actual and applied manufacturing overhead are not equal, a year-end adjustment is required.
Slide 45
Applying Manufacturing Overhead

Work in Process is increased when Manufacturing Overhead is applied to jobs.
McGraw-Hill/Irwin
Slide 46
Accounting for Nonmanufacturing Cost

Nonmanufacturing costs are not assigned to individual jobs, rather they are expensed in the period incurred. Examples: 1. Salary expense of employees who work in a marketing, selling, or administrative capacity. 2. Advertising expenses are expensed in the period incurred.
McGraw-Hill/Irwin
Slide 47
Accounting for Nonmanufacturing Cost

Nonmanufacturing costs (period expenses) are charged to expense as they are incurred.
McGraw-Hill/Irwin
Slide 48
Prepare schedules of cost of goods manufactured and cost of goods sold.
McGraw-Hill/Irwin
Slide 49
Transferring Completed Units

Work in Process (Job Cost Sheet )

Finished Goods
Cost of Goods Mfd.
Cost of Goods Mfd.
McGraw-Hill/Irwin
Slide 50
Transferring Completed Units

As jobs are completed, the Cost of Goods Manufactured is transferred to Finished Goods from Work in Process.
McGraw-Hill/Irwin
Slide 51
Transferring Units Sold


Finished Goods
Cost of Goods Mfd.
Cost of Goods Mfd.
Cost of Goods Sold
Cost of Goods Sold
Cost of Goods Sold

Slide 52
McGraw-Hill/Irwin
Transferring Units Sold

When finished goods are sold, two entries are required: (1) to record the sale, and (2) to record the Cost of Goods Sold.
McGraw-Hill/Irwin
Slide 53
Learning Objective 8 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts.
McGraw-Hill/Irwin
Slide 54
Problems of Overhead Application

The difference between the overhead cost applied to Work in Process and the actual overhead costs of a period is referred to as either underapplied or overapplied overhead.
Underapplied overhead exists when the amount of overhead applied to jobs during the period using the predetermined overhead rate is less than the total amount of overhead actually incurred during the period.
McGraw-Hill/Irwin
Overapplied overhead exists when the amount of overhead applied to jobs during the period using the predetermined overhead rate is greater than the total amount of overhead actually incurred during the period.
Slide 55
Overhead Application Example

PearCos actual overhead for the year was $650,000 with a total of 170,000 direct labor hours worked on jobs. How much total overhead was applied to PearCos jobs during the year? Use PearCos predetermined overhead rate of $4.00 per direct labor hour.
Overhead Applied During the Period

Applied Overhead = POHR Actual Direct Labor Hours Applied Overhead = $4.00 per DLH 170,000 DLH = $680,000
McGraw-Hill/Irwin
Slide 56
Overhead Application Example

PearCos actual overhead for the year was $650,000 with a total of 170,000 direct labor hours worked on jobs. How much has totaloverapplied overhead was applied to PearCos jobs PearCo during the year? Use PearCos predetermined overhead for the year overhead rate of will $4.00 per direct labor hour. by $30,000. What
PearCo Applied do? Overhead During the Period

Applied Overhead = POHR Actual Direct Labor Hours Applied Overhead = $4.00 per DLH 170,000 DLH = $680,000
McGraw-Hill/Irwin
Slide 57
Quick Check
Tiger, Inc. had actual manufacturing overhead costs of $1,210,000 and a predetermined overhead rate of $4.00 per machine hour. Tiger, Inc. worked 290,000 machine hours during the period. Tigers manufacturing overhead is a. $50,000 overapplied. b. $50,000 underapplied. c. $60,000 overapplied. d. $60,000 underapplied.
McGraw-Hill/Irwin
Slide 58
Quick Check
Tiger, Inc. had actual manufacturing overhead costs of $1,210,000 and a predetermined overhead Overhead Applied rate of $4.00 per machine$4.00 hour. Inc. worked per Tiger, hour 290,000 hours = $1,160,000 290,000 machine hours during the period. Tigers Underapplied Overhead manufacturing overhead is a. $50,000 overapplied. c. $60,000 overapplied. d. $60,000 underapplied.
$1,210,000 - $1,160,000 = $50,000
b. $50,000 underapplied.
McGraw-Hill/Irwin
Slide 59
Disposition of Under- or Overapplied Overhead

PearCos Method
$30,000 may be allocated to these accounts.
$30,000 may be closed directly to cost of goods sold.
OR
Work in Process Finished Goods Cost of Goods Sold
Slide 60
Cost of Goods Sold

McGraw-Hill/Irwin
Disposition of Under- or Overapplied Overhead

PearCos Cost of Goods Sold
Unadjusted Balance $30,000 Adjusted Balance
PearCos Mfg. Overhead

Actual Overhead overhead applied costs to jobs $650,000 $30,000 $680,000 $30,000 overapplied
McGraw-Hill/Irwin
Slide 61
Allocating Under- or Overapplied Overhead Between Accounts

Assume the overhead applied in ending Work in Process Inventory, ending Finished Goods Inventory, and Cost of Goods Sold is shown below:
Work in process Finished Goods Cost of Goods Sold Total Amount $ 68,000 204,000 408,000 $ 680,000 Percent of Total 10% 30% 60% 100% Allocation of $30,000 $ 3,000 9,000 18,000 $ 30,000
McGraw-Hill/Irwin
Slide 62

We would complete the following allocation of $30,000 overapplied overhead:
Percent of Total 10% 30% 60% 100% Allocation of $30,000 $ 3,000 9,000 18,000 $ 30,000
Work in process Finished Goods Cost of Goods Sold Total
Amount $ 68,000 204,000 408,000 $ 680,000
10% $30,000
McGraw-Hill/Irwin
Slide 63

Work in process Finished Goods Cost of Goods Sold Total Amount $ 68,000 204,000 408,000 $ 680,000 Percent of Total 10% 30% 60% 100% Allocation of $30,000 $ 3,000 9,000 18,000 $ 30,000
McGraw-Hill/Irwin
Slide 64
Overapplied and Underapplied Manufacturing Overhead - Summary

PearCos Method
If Manufacturing Overhead is . . . UNDERAPPLIED (Applied OH is less than actual OH) OVERAPPLIED (Applied OH is greater than actual OH) DECREASE Cost of Goods Sold Alternative 1 Close to Cost of Goods Sold INCREASE Cost of Goods Sold Alternative 2 Allocation INCREASE Work in Process Finished Goods Cost of Goods Sold DECREASE Work in Process Finished Goods Cost of Goods Sold
More accurate but more complex to compute.

McGraw-Hill/Irwin
Slide 65
Quick Check
What effect will the overapplied overhead have on PearCos net operating income?
a. Net operating income will increase. b. Net operating income will be unaffected. c. Net operating income will decrease.
McGraw-Hill/Irwin
Slide 66
Quick Check
What effect will the overapplied overhead have on PearCos net operating income?
a. Net operating income will increase. b. Net operating income will be unaffected. c. Net operating income will decrease.
McGraw-Hill/Irwin
Slide 67
Multiple Predetermined Overhead Rates

To this point, we have assumed that there is a single predetermined overhead rate called a plantwide overhead rate.
Large companies often use multiple predetermined overhead rates. May be more complex but . . .
May be more accurate because it reflects differences across departments.

McGraw-Hill/Irwin
Slide 68
Job-Order Costing in Service Companies

Job-order costing is used in many different types of service companies.
McGraw-Hill/Irwin
Slide 69
The Use of Information Technology

Technology plays an important part in many job-order cost systems. When combined with Electronic Data Interchange (EDI) or a web-based programming language called Extensible Markup Language (XML), bar coding eliminates the inefficiencies and inaccuracies associated with manual clerical processes.
McGraw-Hill/Irwin
Slide 70
The Predetermined Overhead Rate and Capacity

Appendix 3A
2010 The McGraw-Hill Companies, Inc.
(Appendix 3A) Understand the implications of basing the predetermined overhead rate on activity at capacity rather than on estimated activity for the period.
McGraw-Hill/Irwin
Slide 72
Predetermined Overhead Rate and Capacity

Calculating predetermined overhead rates using an estimated, or budgeted amount of the allocation base has been criticized because: 1.Basing the predetermined overhead rate upon budgeted activity results in product costs that fluctuate depending upon the activity level. 2.Calculating predetermined rates based upon budgeted activity charges products for costs that they do not use.
McGraw-Hill/Irwin
Slide 73
Capacity-Based Overhead Rates

Criticisms can be overcome by using estimated total units in the allocation base at capacity in the denominator of the predetermined overhead rate calculation. Lets look at the difference!
McGraw-Hill/Irwin
Slide 74
An Example
Equipment is leased for $100,000 per year. Running at full capacity, 50,000 units may be produced. The company estimates that 40,000 units will be produced and sold next year. What is the predetermined overhead rate?
McGraw-Hill/Irwin
Slide 75
An Example
Equipment is leased for $100,000 per year. Running at full capacity, 50,000 units may be produced. The company estimates that 40,000 units will be produced and sold next year.
Traditional = Method Capacity Method $100,000 40,000 $100,000 50,000
= $2.50 per unit
= $2.00 per unit
McGraw-Hill/Irwin
Slide 76
Quick Check
Crest Winery in Woodinville leases an automatic corking machine for $100,000 per year. At full capacity, it can cork 50,000 cases of wine per year. The company estimates 40,000 cases of wine will be produced and sold next year. What is the predetermined overhead rate based on the estimated number of cases of wine?
a. $2.00 per case. b. $2.50 per case. c. $4.00 per case.
McGraw-Hill/Irwin
Slide 77
Quick Check
Crest Winery in Woodinville leases an automatic corking machine for $100,000 per year. At full capacity, it can cork 50,000 cases of wine per year. The company estimates 40,000 cases of wine will be produced and sold next year. What is the predetermined overhead rate based on the estimated number of cases of wine?
McGraw-Hill/Irwin
Slide 78
Quick Check
Crest Winery in Woodinville leases an automatic corking machine for $100,000 per year. At full capacity, it can cork 50,000 cases of wine per year. The company estimates 40,000 cases of wine will be produced and sold next year. What is the predetermined overhead rate based on the number of cases of wine at capacity?
McGraw-Hill/Irwin
Slide 79
Quick Check
Crest Winery in Woodinville leases an automatic corking machine for $100,000 per year. At full capacity, it can cork 50,000 cases of wine per year. The company estimates 40,000 cases of wine will be produced and sold next year. What is the predetermined overhead rate based on the number of cases of wine at capacity?
McGraw-Hill/Irwin
Slide 80
Quick Check
When capacity is used in the denominator of the predetermined rate, what happens to the predetermined overhead rate as estimated activity decreases?
a. The predetermined overhead rate goes up when activity goes down. b. The predetermined overhead rate stays the same because it is not affected by changes in activity. c. The predetermined overhead rate goes down when activity goes down.
McGraw-Hill/Irwin
Slide 81
Quick Check
When capacity is used in the denominator of the predetermined rate, what happens to the predetermined overhead rate as estimated activity decreases?
McGraw-Hill/Irwin
Slide 82
Quick Check
When estimated activity is used in the denominator of the predetermined rate, what happens to the predetermined overhead rate as estimated activity decreases?
McGraw-Hill/Irwin
Slide 83
Quick Check
When estimated activity is used in the denominator of the predetermined rate, what happens to the predetermined overhead rate as estimated activity decreases?
McGraw-Hill/Irwin
Slide 84
Income Statement Preparation Capacity

Actual volume Selling price Variable production cost Fixed manufacturing overhead Capacity Predetermined overhead rate Fixed selling and admin. expense Revenue Cost of goods sold Gross margin Cost of idle capacity Selling and admin. expense Net operating income 40,000 $40.00 $24.00 $100,000 50,000 $2.00 $500,000 $ 1,600,000 1,040,000 560,000 20,000 500,000 $ 40,000 cases per case per case per year cases per case per year
McGraw-Hill/Irwin
Slide 85
Income Statement Preparation Traditional

Actual volume Selling price Variable production cost Fixed manufacturing overhead Capacity Predetermined overhead rate Fixed selling and admin. expense Revenue Cost of goods sold Gross margin Cost of idle capacity Selling and admin. expense Net operating income 40,000 $40.00 $24.00 $100,000 40,000 $2.50 $500,000 $ 1,600,000 1,060,000 540,000 500,000 $ 40,000 cases per case per case per year cases per case per year
McGraw-Hill/Irwin
Slide 86
End of Chapter 3
McGraw-Hill/Irwin
Slide 87

Chap 003 Cost

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Systems Design: Job-Order Costing

2010 The McGraw-Hill Companies, Inc.

Types of Product Costing Systems

A company produces many units of a single product.

Types of Product Costing Systems

A company produces many units of a single product. Example companies:

Types of Product Costing Systems

Many different products are produced each period.

Types of Product Costing Systems

Many different products are produced each period.

Comparing Process and Job-Order Costing

Identify the documents used in a job-order costing system.

Job-Order Costing An Overview

Indirect Manufacturing Costs

The Job Cost Sheet

Units Shipped Date Number Balance

Measuring Direct Materials Cost

Measuring Direct Materials Cost

Measuring Direct Labor Costs

Job-Order Cost Accounting

Why Use an Allocation Base?

Manufacturing Overhead Application

Ideally, the allocation base is a cost driver that causes overhead.

The Need for a POHR

Determining Predetermined Overhead Rates

Estimate the level of production for the period.

Estimate total amount of the allocation base for the period.

Estimate total manufacturing overhead costs.

Application of Manufacturing Overhead

Based on estimates, and determined before the period begins.

Overhead applied = POHR Actual activity

Overhead Application Rate

$640,000 POHR = 160,000 direct labor hours (DLH)

Job-Order Cost Accounting

Job-Order Cost Accounting

Interpreting the Average Unit Cost

a. $200. b. $350. c. $380. d. $730.

a. $200. b. $350. c. $380. d. $730.

POHR = $760,000/20,000 hours

Job-Order Costing Document Flow Summary

A sales order is the basis of issuing a production order.

A production order initiates work on a job.

Job-Order Costing Document Flow Summary

Materials used may be either direct or indirect.

Job Cost Sheets

Materials Requisition Indirect materials Manufacturing Overhead Account

Job-Order Costing Document Flow Summary

Job Cost Sheets

Employee Time Ticket Indirect Labor Manufacturing Overhead Account

Job-Order Costing Document Flow Summary

Other Actual OH Charges

Manufacturing Overhead Account

POHR rate used to apply overhead

Job Cost Sheets

Employee Time Ticket

Learning Objectives 4 and 7

Use T-accounts to show the flow of costs in a job-order costing system.

Job-Order Costing: The Flow of Costs

The Purchase and Issue of Raw Materials

Work in Process (Job Cost Sheet)

Cost Flows Material Purchases

Cost Flows Material Usage

The Recording of Labor Costs