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Job Order Costing: Prepared and Lectured by MR - Sin Rajak, MBA 1
Job Order Costing: Prepared and Lectured by MR - Sin Rajak, MBA 1
Job Order Costing: Prepared and Lectured by MR - Sin Rajak, MBA 1
Cost a
Raw Materials
Assigned to Completed
Factory Labors
Manufacturing
Overhead
Sold
Accumulation Assignment
1. Purchase raw materials 4. Raw materials are used
A separate job cost sheet is kept for each job. Job cost
sheets constitute the subsidiary ledger for the Work in
Process Inventory account.
$13,800
$6,000
Date: 1/6/16
Employee John Nash Employee No : 124
Charge to Work in Process Job No : 101
Manufacturing Overhead
$13,800
$6,000
$4,000
Prepared and Lectured by Mr.Sin Rajak, MBA 26
e. Manufacturing Overhead Cost Journalizing and Posting
Estimate Annual
Overhead Costs ÷ Expected Annual
Operating Acivities = Predetermined
Overhead Rate
is
Predetermined
Activity Base assigned
Overhead Rate to
$6,000 $28,000
$4,000 $22,400
$74,400 $74,400
Sales $50,000
Less: Cost of Goods Sold
Finished Goods Inventory Jan 1 $0
Cost of goods manufactured 39,000
Cost of goods available for sale 39,000
Finished goods inventory, Jan 31 0
Cost of goods sold 39,000
Gross Profit $11,000
Prepared and Lectured by Mr.Sin Rajak, MBA 39
7. Flow of Documents
Source Documents
The job cost sheet
Materials summarizes the
Requisition Slips cost of jobs
completed or not
completed at the
Labor Time Job Cost end of the
Ticket Sheet accounting period.
Jobs completed
Predetermined are transferred to
Overhead Rate finished goods to
await sales.
Manufacturing Overhead
If actual is greater than
Actual Applied applied,manufacturing
(Cost incurred) (Cost assigned) overhead is
underapplied.