JoborderCosting

1 Product is manufactured food i.e the customer

wants somesort of unique individualized product
similar type product huge amount a Iota out pin processcosting

2 Each order requires unique

tracing or allocating costs
to each job
3 Mainting cost records
each joyfor
Netflix other glair show a costing a Otmar
end
Aimar Record INT

But manufacturing overhead at cost Tina at

TAM AOT Tough

X7 6890 116 36 8 120

116
120
Q
DI Predeterminedoverheadfatelot

why do we need it
Difficult to trace overhead in a timely fashion
actual overhead is not known till the end of the
period
Diversity of overhead makes it difficult
costs are fined
Many manufacturing overhead even
though output fluctuates during the period

Estimated total manufacturing

overhead cost for the coming period
p
Estimated total units in the
allocation base for the coming period
cotst driver

Direct Labor hours Dut labor Intensive

cost driver
Allocation
f Machine hours MH Machine Intensive
base

The pour is computed before the period begins using

a 4 step process

1 Estimate the total amount of Allocation base that

will be required for next periods estimated level of
production
2 Estimate total fixed Molt cost for the coming period
and the variable molt unit of the allocation base

3 use the ear to estimate the total amount of M O H

fixed
4 8 tba Total amount of Allocation base
I Gesti variable
Total Molt per unit
estimated allocation base
molt

4 compute POHR

200,000 T 2.75 X 160,000

Total M OH cost
640 on

i POHR Ideation Tof amour

base DLH
 2

7 6890 116 36 8 120 32

8 9

116
120
32
268
268 2 134

armbands
I.IE t
cati Pour

Actual Total Molt applied

Rengtheriod Poitra
Allocation
base

Actual molt molt Underapplied

IIthgendofthe applied cover applied

so now we need to adjust the MOH

PI
 Direct materials

Y
Direct Labor Manufacturing cost
Molt applied charged to jobs

Man cost
in process
beginning work cost of goods
ending work in
process manufac Coan

COGM beginning finished good inventory

ending finished good inventory

COGS unadjusted

cogs unadjusted under apply molt COGS

over applied Molt actual

so amo COGS use at MOH adjust Mr 271

actual