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Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
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Job Order Cost Accounting
2 - 2
Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
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Cost Accounting
An area of accounting that involves:
Measuring Recording Reporting
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Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
NextSlide
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Job Order Cost FlowIllustration 2-3
Job Order Cost AccountingIllustration 2-4
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Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
NextSlide
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Job Cost SheetA form used to record the costs
chargeable to a job to determine:
• the total and
• unit cost
of the
completed
job.
Job Cost Sheet Job No. _________________________________ Quantity ________________________________ Item ___________________________________ Date Requested __________________________ For ____________________________________ Date Completed
__________________________
Direct Direct Manufacturing Date Materials Labor Overhead
Cost of completed job Direct materials $ Direct labor Manufacturing overhead Total cost $
Unit cost (total dollars ÷ quantity) $
Illustration 2-6
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Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
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Receive orders from
customers.
Schedulejobs.
Ordermaterials.
Begin production.
• Events in Job Order Manufacturing
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Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
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Goods in Process
Cost of GoodsSold
Labor
Materials
Ind
irec
t
FinishedGoods
FactoryOverhead
Direct
Direct
Allocate
• Job Order Manufacturing ActivitiesIn
dir
ect
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Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
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• Labor Time Ticket
LABOR TIME RECORDEmployee ___________ No. ______Job _______
Time: Started: ___________ Rate: ____________ Stopped: __________ Cost of Labor Elapsed: __________ Charged to Job $___________
Employee: _J K ___________ Supervisor: M . M orley
J. Khan M16J9738
100017007 hours
$28
$196
Date: 8/03
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Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
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Flow of Manufacturing CostsFlow of Manufacturing Costs
DMDM
Materials Work in Process Finished Goods
Wages Payable Factory Overhead
Cost of Goods Sold
DMDMMaterialsPurchased
TotalWages
Direct materials used in productionDMDM
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Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
NextSlide
PreviousSlide
EndEndShowShow
DMDM
Materials Work in Process Finished Goods
Wages Payable Factory Overhead
Cost of Goods Sold
IMIM
DMDMMaterialsPurchased
TotalWages
Indirect materials used in productionIMIM
Flow of Manufacturing CostsFlow of Manufacturing Costs
IMIM
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Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
NextSlide
PreviousSlide
EndEndShowShow
DMDM
Materials Work in Process Finished Goods
Wages Payable
DLDL
Factory Overhead
Cost of Goods Sold
IMIM
DMDMMaterialsPurchased
TotalWages
Direct labor used in productionDLDL
Flow of Manufacturing CostsFlow of Manufacturing Costs
IMIM
DLDL
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Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
NextSlide
PreviousSlide
EndEndShowShow
DMDM
Materials Work in Process Finished Goods
Wages Payable
DLDL
Factory Overhead
Cost of Goods Sold
IMIM
ILIL
DMDM
IMIM
DLDL
ILIL
MaterialsPurchased
TotalWages
Indirect labor used in productionILIL
Flow of Manufacturing CostsFlow of Manufacturing Costs
2 - 13
Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
NextSlide
PreviousSlide
EndEndShowShow
DMDM
Materials Work in Process Finished Goods
Wages Payable
DLDL
Factory Overhead
Cost of Goods Sold
IMIM
ILIL
DMDM
IMIM
DLDL
ILIL
MaterialsPurchased
TotalWages
Other factory overhead costs incurred during production
OFOHOFOH
Flow of Manufacturing CostsFlow of Manufacturing Costs
OFOHOFOH
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Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
NextSlide
PreviousSlide
EndEndShowShow
DMDM
Materials Work in Process Finished Goods
Wages Payable
DLDL
Factory Overhead
Cost of Goods Sold
IMIM
ILIL
DMDM
IMIM
DLDL
ILIL
OFOHOFOH
MaterialsPurchased
TotalWages
Based on predetermined overhead rate
FOHAFOHA
Factory overhead applied to work in processFOHAFOHA
Flow of Manufacturing CostsFlow of Manufacturing Costs
FOHAFOHA
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Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
NextSlide
PreviousSlide
EndEndShowShow
DMDM
Materials Work in Process Finished Goods
Wages Payable
DLDL
Factory Overhead
Cost of Goods Sold
IMIM
ILIL
DMDM
IMIM
DLDL
FOHAFOHA
ILIL
OFOHOFOH
COGMCOGMCOGMCOGMMaterialsPurchased
TotalWages
FOHAFOHA
Cost of goods manufactured and transferred to finished goods
COGMCOGM
Flow of Manufacturing CostsFlow of Manufacturing Costs
2 - 16
Purposes of Cost Accounting
Flow of Costs in Job Order
Importance of Job Cost Sheet
Predetermined Overhead Rate
Entries for Jobs Completed/Sold
Under- and Over-applied Overhead
NextSlide
PreviousSlide
EndEndShowShow
DMDM
Materials Work in Process Finished Goods
Wages Payable
DLDL
Factory Overhead
Cost of Goods Sold
IMIM
ILIL
DMDM
IMIM
DLDL
FOHAFOHA
ILIL
OFOHOFOH
SOLDSOLDMaterialsPurchased
TotalWages
FOHAFOHA
Finished goods soldSOLDSOLD
COGMCOGMCOGMCOGM
Flow of Manufacturing CostsFlow of Manufacturing Costs
SOLDSOLD
