$($Slide #$3)$

Similarities Between Job Order Costing &

Process Costing:

The accumulation of costs is the same in both systems.

Both costing systems track the same three product costs, which are:

$(1)$

$(12)$

$(3)$

Costs are assigned to the same general ledger accounts in both costing systems.

$(1)$ Direct Materials, $(2)$ Indirect Labor, & $(3)$ Manufacturing Overhead

$(1)$ Indirect Materials, $(2)$ Direct Labor, & $(3)$ Manufacturing Overhead

$(1)$ Direct Materials, $(2)$ Direct Labor, & $(3)$ Manufacturing Overhead

$(1)$ Direct Materials, $(2)$ Direct Labor, & $(3)$ Work in Process