Accounting 100 – Job-Order Costing

These flashcards cover key concepts related to Job-Order Costing in accounting, focusing on definitions and terms necessary for understanding the related processes.

Predetermined Overhead Rate (POHR)

A rate used to apply manufacturing overhead to individual jobs based on estimated costs and estimated activity levels.

Manufacturing Overhead (MOH)

Indirect costs associated with manufacturing that cannot be directly traced to specific jobs.

Direct Materials (DM)

The raw materials that can be directly traced to a specific job.

Direct Labor (DL)

The labor costs directly associated with the production of goods.

Cost of Goods Sold (COGS)

The total cost of manufacturing and purchasing goods that have been sold during a specific period.

Job Cost Sheet

A form that tracks the costs associated with a specific job, including direct materials, direct labor, and applied manufacturing overhead.

Applied Overhead

The amount of manufacturing overhead that has been allocated to a job, based on the predetermined overhead rate.

Estimated Manufacturing Overhead

The anticipated total overhead costs for a period, used to calculate the POHR.

Actual Manufacturing Overhead

The actual overhead costs incurred during a specific period, affecting accurate job costing.

Types of Inventory in Manufacturing

1) Raw Materials, 2) Work in Process, 3) Finished Goods.

Goods Available for Sale (GAFS)

The total amount of inventory that can be sold during a period, calculated as beginning inventory plus purchases.