Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

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Multiple Choice

In a job costing system, the target cost for a job is calculated as:

Total sales revenue expected from the job

The sum of all indirect costs incurred during the period

The difference between actual and budgeted costs for all jobs

Estimated direct materials, direct labor, and applied overhead assigned to the job

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Verified step by step guidance

Understand the concept of job costing: In a job costing system, costs are assigned to specific jobs or projects. The target cost for a job is calculated based on the estimated direct materials, direct labor, and applied overhead assigned to the job.

Step 1: Identify the direct materials required for the job. Direct materials are the raw materials that can be directly traced to the job. Estimate the cost of these materials based on the quantity and price per unit.

Step 2: Determine the direct labor costs. Direct labor refers to the wages paid to workers who are directly involved in completing the job. Calculate the cost by multiplying the number of hours worked by the hourly wage rate.

Step 3: Calculate the applied overhead. Overhead costs are indirect costs that cannot be directly traced to a specific job, such as utilities, rent, and administrative expenses. These costs are applied to the job using a predetermined overhead rate, which is typically based on direct labor hours or machine hours.

Step 4: Add the estimated direct materials, direct labor, and applied overhead to calculate the target cost for the job. This sum represents the total estimated cost assigned to the job.