1. Product Costing and Cost Accumulation in a Batch Production Environment Chapter 3

2. Learning Objective 1

3. Product and Service Costing 3- Financial Accounting Product costs are used to value inventory and to compute cost of goods sold. Managerial Accounting and Cost Management Product costs are used for planning, control, directing, and management decision making. Our focus changes from financial statement costs to operations

4. Learning Objective 2

5. 3- Flow of Costs in Manufacturing Firm

6. Learning Objective 3

8. 3- Job-Order Cost Accounting

9. Learning Objective 4

11. Learning Objective 5

16. 3- Overapplied and Underapplied Manufacturing Overhead - Summary

17. Learning Objective 6

18. 3- Schedule of Cost of Goods Manufactured

19. 3- Schedule of Cost of Goods Sold

20. 3- Actual direct material and direct labor combined with actual overhead. Actual direct material and direct labor combined with predetermined overhead. 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. Actual and Normal Costing

21. Learning Objective 7

22. Departmental Overhead Rates 3- Department 1 Department 2 Department 3 Products Cost pools Direct Labor Hours Machine Hours Raw Materials Cost Stage One: Costs assigned to pools Stage Two: Costs applied to products Departmental Allocation Bases Indirect Materials Other Overhead Indirect Labor

23. Learning Objective 8

25. End of Chapter 3 3-