Job Order Costing / Process Cost SystemsWarren / Reeve / DuchacExercise 17-1 Problem 17-2B Problem 18-2B |
In a job costing system, costs may be accumulated either by job or by batch. For a typical job, direct material, labor, subcontract costs, equipment, and other direct costs are tracked at their actual values. These are accrued until the job or batch is completed.
Process costing systems assign costs to one or more production processes. Because all units are identical or very similar, average costs for each unit of product are calculated by dividing the process costs by the number of units produced.
