| 3-1 | Discuss the role of product and service costing in manufacturing and nonmanufacturing firms. |
| 3-2 | Diagram and explain the flow of costs through the manufacturing accounts used in product costing. |
| 3-3 | Distinguish between job-order costing and process costing. |
| 3-4 | Compute a predetermined overhead rate and explain its use in job-order costing for job-shop and batch-production environments. |
| 3-5 | Prepare journal entries to record the costs of direct material, direct labor, and manufacturing overhead in a job-order costing system. |
| 3-6 | Prepare a schedule of cost of goods manufactured, a schedule of cost of goods sold, and an income statement for a manufacturer. |
| 3-7 | Describe the two-stage allocation process used to assign manufacturing overhead costs to production jobs. |
| 3-8 | Describe the process of project costing used in service industry firms and nonprofit organizations. |
