This course introduces managerial accounting concepts focused on companies that manufacture products using either a job cost system or a process cost system. You’ll learn how to classify costs in multiple ways, understand how costs flow through a manufacturing company, and distinguish when to use a job cost system versus a process cost system. Special attention is given to tracking costs through raw materials, work in process, factory overhead, finished goods, and ultimately into cost of goods sold.

We will dive into the specific flow of inventory costs in a job cost system, explore key documents used to track and record costs, and explain the role of overhead, including how to calculate and apply a predetermined overhead rate. Step-by-step journal entries will show how to record transactions throughout the production cycle, from materials purchase to job completion and sale. By the end of the course, you'll have a comprehensive understanding of how job costing works within a manufacturing environment.