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Chapter 19
Job Order Cost Accounting
Job Order Cost Accounting
Adjustment of
Overapplied or
Job Order Cost Underapplied
Flows and Overhead
Job Order Cost Reports Underapplied
Accounting Materials cost flows overhead
Cost accounting and documents Overapplied
system Labor cost flows and overhead
Job order documents
manufacturing Overhead cost flows
Events in job order and documents
costing Summary of cost
Job order sheet flows
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Perpetual Inventory Systems
Perpetual systems Periodic systems
(永续盘存制） （定期盘存制）
continually update accounting records
accounting records for relating to cost of
cost of materials, materials, goods in
goods in process, and process, and finished
finished goods goods inventories are
inventories. updated only at the end
of the accounting
period.
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Job Order Production分批生产
Process Job
Costing Costing
Chapter 20
Many costs can be directly traced to each job.
Typical job order cost applications:
Special-order printing
Building construction
Also used in service industry
Hospitals
Law firms
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Events In Job Order Costing分批成本事项
Receive order
Schedule the
from
job
customer
Predict cost Negotiate a sales price
to complete and decide whether to
job pursue the job.
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Job Order Production Activities
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Job Order Cost Documents
The primary
document for
tracking the costs
associated with a
given job is the job
cost sheet.分批成本单
Let’s investigate
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Job Cost Sheet
Road Warriors Job Cost Sheet
Customer Carroll Connor Job No. B15
Address 1542 High Point Dr. Portland, Oregon
Job Description Level I Alarm System on Ford Expedition
Date promised 3/15/09 Date started 3/3/09 Date completed
Direct Materials Direct Labor Factory Overhead
Date Req. Cost Date Ticket Cost Date Rate Cost
Total Total Total
Remarks Cost Summary
Direct Materials
Direct Labor
Factory Overhead
Total Cost
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Materials Cost Flows and Document
Road Warriors acquired $450 of wiring and related
materials on March 4,2009.
when materials are first received from supplies, the
employee count and inspect them and record the items’
quantity and cost on a receiving report(收料单). The
receiving report serves as the source document for
recording materials received in both a materials ledger
card (材料分类账卡)and in the general ledger.
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Materials Order Cost Flow and Reprots
----Materials Ledger Card材料分类账卡片
Road Warriors Materials Ledger Card
Item Alarm sys. wiring Stock No. M-347 Location Bin137
Maximum Qty. 5 units Minimum Qty. 1 unit Reorder Qty. 2 units
Received Issued Balance
Rec. Unit Total Req. Unit Total Unit Total
Date Rep. Units Cost Cost No. Units Cost Cost Units Cost Cost
1 $225 $225
3/4/09 C7117 2 $225 $450 3 $225 $675
3/7/09 R4705 1 $225 $225 2 $225 $450
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Materials Requisition领料单
Road Warriors Materials Requisition No. R-4705
Job No. B15 Date 3-7-09
Material Stock No. M-347
Material Description Alarm system wiring
Quantity Requested 1 Requested By C. Luther
Quantity Provided 1 Date Provided 3-7-09
Filled By
M. Bateman Received By
C. Luther
Remarks
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Job Cost Sheet
Road Warriors Job Cost Sheet
Customer Carroll Connor Job No. B15
Address 1542 High Point Dr. Portland, Oregon
Job Description Level I Alarm System on Ford Expedition
Date promised 3/15/09 Date started 3/3/09 Date completed
Direct Materials Direct Labor Factory Overhead
Date Req. Cost Date Ticket Cost Date Rate Cost
3/7/09 R4705 $ 225
Total Total Total
Remarks Cost Summary
Direct Materials $ 225
Direct Labor
Factory Overhead
Total Cost
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Entries For Job Order
Production Costs
3-7-09:
Goods In Process Inventory 225
Raw Materials Inventory 225
To record use materials on jobs
Factory Overhead 450
Raw Materials Inventory 450
To record use of indirect materials
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Labor Order Cost Flow
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Labor Order Cost Flow
According to clock card data, worker earned
$1,500 for the week ended March 5. Illustrating
the flow of labor costs, the accrual and payment of
these wages are recorded:
Dr: Payroll Expense 1,500
Cr:Cash 1,500
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Labor Order Cost Flow and Reprots
---Labor Time Ticket员工计时票
Road Warriors Time Ticket No. L-3479
Job No. B15 Date 3/8/09
Employee Name T. Zeller Employee Number 3969
TIME AND RATE INFORMATION:
Start Time 9:00 Finish Time 12:00
Elapsed Time 3.0 Hourly Rate $20.00 Total Cost $60.00
Approved By C. Luther
Remarks
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Job Cost Sheet
Road Warriors Job Cost Sheet
Customer Carroll Connor Job No. B15
Address 1542 High Point Dr. Portland, Oregon
Job Description Level I Alarm System on Ford Expedition
Date promised 3/15/09 Date started 3/3/09 Date completed
Direct Materials Direct Labor Factory Overhead
Date Req. Cost Date Ticket Cost Date Rate Cost
3/7/09 R4705 $ 225 3/8/09 L3479 $ 60
Total Total $ 60 Total
Remarks Cost Summary
Direct Materials $ 225
Direct Labor 60
Factory Overhead
Total Cost
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Entries For Job Order
Production Costs
When time tickets report labor used on a
specific job, this cost is recorded as direct
labor.
Good in Process Inventory 60
Factory payroll/Payroll Expense 60
To assign costs of direct labor to jobs
Factory Overhead 1,100
Factory payroll/Salaries Expense 1,100
To record indirect labor costs as overhead
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Overhead Cost Flows
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Entries For Job Order
Production Costs
Factory overhead is a temporary account.
Factory Overhead 250
Cash (and other accounts) 250
Factory Overhead 600
Accumulated Depreciation 600
To record factory overhead such as insurance,
utilities and depreciation.
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Job Cost Sheet
Road Warriors Job Cost Sheet
Customer Carroll Connor Job No. B15
Address 1542 High Point Dr. Portland, Oregon
Job Description Level I Alarm System on Ford Expedition
Date promised 3/15/09 Date started 3/3/09 Date completed
Direct Materials Direct Labor Factory Overhead
Date Req. Cost Date Ticket Cost Date Rate Cost
3/7/09 R4705 $ 225 3/8/09 L3479 $ 60
Total Total $ 60 Total
Allocate manufacturing overhead to jobs using
Remarks Cost Summary
overhead rate
a predeterminedMaterials
Direct $ 225
Direct Labor 60
Factory Overhead Let’s do it
Total Cost
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Factory Overhead
We generally allocate overhead by linking
it to another factor used in production,
such as direct labor or machine hours. The
factor called allocation base分配基础。
We cannot wait until the end of a period to
allocate overhead to jobs because
perpetual inventory system.----
predetermined overhead rate预定间接费用率
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Predetermined Overhead Rate
predetermined overhead rate预定间接费用率=Estimated
overhead costs估计的间接费用成本/Estimated activity
base估计的分配基础
Road Warriors uses a predetermined overhead rate (POHR) based
on direct labor cost to apply overhead to jobs.
Estimated total manufacturing
overhead cost for the coming period
POHR =
Estimated total direct labor costs
for the coming period
$200,000
POHR = = 160% of direct labor $
$125,000
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Job Cost Sheet
Road Warriors Job Cost Sheet
Customer Carroll Connor Job No. B15
Address 1542 High Point Dr. Portland, Oregon
Job Description Level I Alarm System on Ford Expedition
Date promised 3/15/09 Date started 3/3/09 Date completed
Direct Materials Direct Labor Factory Overhead
Date Req. Cost Date Ticket Cost Date Rate Cost
3/7/09 R4705 $ 225 3/8/09 L3479 $ 60 3/08/09 160% $ 96
Total Total $ 60 Total $ 96
Remarks Cost Summary
Direct Materials $ 225
Direct Labor 60
Factory Overhead $ 96
Total Cost $ 381
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Entries For Job Order
Production Costs
The entry to record this allocation is:
Good in Process Inventory--Job15 96
Factory Overhead 96
To apply factory overhead
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Summary of Cost Flows成本流程汇总表
Let’s examine the
cost flows in a job
order system.
We will use
T-accounts and
start with
materials.
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Summary of Cost Flows
Dr Cr Dr Cr
Raw Materials Goods in Process
Material Direct Direct
Purchases Material Material
Indirect
Material
Dr Cr
Factory Overhead
Actual
Overhead
Costs
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Summary of Cost Flows
Dr Cr Dr Cr
Factory Payroll Goods in Process
Incurred Direct Direct
Labor Material
Indirect Direct
Labor Labor
Overhead
Dr Cr
Factory Overhead When
Actual Overhead Actual Applied
Overhead Applied to /
factory = factory
overhead overhead
Costs Work in an adjustment is needed.
Process We will look at how to
accomplish this later.
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Summary of Cost Flows
Now let’s
complete the
goods and sell
them.
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Summary of Cost Flows
Dr Cr Dr Cr
Goods in Process Finished Goods
Direct
Material Cost of Cost of Cost of
Direct Goods Goods Goods
Labor Mfd. Mfd. Sold
Overhead
Dr Cr
Cost of Goods Sold
Cost of
Goods
Sold
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Entries For Job Order
Production Costs
Finished Goods Inventory 8,940
Goods in Process Inventory 8,940
To record completion of the jobs
Cost of Goods Sold 5,580
Finished Goods Inventory 5,580
To record the sale of jobs
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Exercise
A company’s cost accounting system uses
direct labor costs to apply overhead to goods in
process and finished goods inventories. Its
production costs for the period are: direct
materials, $45,000; direct labor,$35,000; and
overhead applied, $38,500. What is its
predetermined overhead allocation rate?
a 10% b 110% c 86% d 91% e 117%
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Exercise
A company’s predetermined overhead
allocation rate is 150% of its direct labor
costs. How much overhead is applied to a
job that requires total direct labor costs of
30,000, and direct material costs of
40,000,and actual overhead of 75,000.
a $15,000 b $ 30,000 c $ 45,000
d $ 60,000 e $ 75,000
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Exercise
A company’s ending inventory of finished goods
has a total cost of $10,000 and consists of 500 units.
If the overhead applied to these goods is $4,000,
and the predetermined overhead rate is 80% of
direct labor costs, how much direct materials cost
was incurred in producing these 500 units?
a $10,000 b $6,000 c $4,000 d $5,000 e $1,000
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Adjustment Of Overapplied Or
Underapplied Overhead对于多分配和少分配间接费用的调整
The POHR is based
on estimates.
The result will be either
What happens if underapplied or overapplied
actual results differ overhead and we
from the estimates? will adjust Cost of Goods
Sold at the end of the period.
Here, let me show you.
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Adjustment Of Overapplied Or
Underapplied Overhead
Overhead is
overapplied.
Actual
overhead
costs Overhead
incurred applied to
Work in Process
(POHR × Activity)
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Adjustment Of Overapplied Or
Underapplied Overhead
Overhead is
underapplied.
Overhead
applied to
Work in Process
Actual
(POHR × Activity)
overhead
costs
incurred
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Adjustment Of Overapplied Or
Underapplied Overhead
Adjusting Cost of Goods Sold for
underapplied or overapplied overhead
Cost of Goods
Overhead is: Sold is: Adjustment will:
Actual overhead > Increase Cost
Underapplied Too low
applied overhead of Goods Sold
Actual overhead < Decrease Cost
Overapplied Too high
applied overhead of Goods Sold
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Entries For Job Order
Production Costs
Cost of Goods Sold 480
Factory Overhead 480
To adjust for underapplied overhead costs
Factory Overhead 480
Cost of Goods Sold 480
To adjust for overapplied overhead costs
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