WHITE CELLS ARE ADJUSTABLE

Kristoffer Burnett - Certified Management Accountant, 2009-2011

Job Order Costing Example

Sales Order
Sales order item
Price
Sales quantity
Total

Item1
$

168.00 From Data input

50 Valid quantities are between 10 - 50
8,400 Price * Sales quantity

Materials Requisition Form

Quantity Per
Item1
3
6

Direct Material
DM9
DM10

Units
Scrapped
1
4

Cost Per
Unit
$
5.18
1.67

Total
Quantity
151
304

Total

Total
Cost
$ 782
508

$ 1,290

Time Ticket

Start
Time

Date
7-Jul
7-Jul
9-Jul
9-Jul
10-Jul
10-Jul
12-Jul
12-Jul
13-Jul
13-Jul
15-Jul
15-Jul
18-Jul
18-Jul
19-Jul

Stop
Time
11:25 AM
4:39 PM
11:45 AM
4:48 PM
11:49 AM
4:06 PM
11:44 AM
4:07 PM
11:58 AM
4:52 PM
12:00 PM
4:30 PM
12:00 PM
4:33 PM
11:01 AM

8:05 AM
1:09 PM
8:15 AM
1:01 PM
8:41 AM
1:55 PM
8:49 AM
1:43 PM
8:35 AM
1:59 PM
8:09 AM
1:45 PM
8:32 AM
1:04 PM
8:03 AM

Hours
3.3
3.5
3.5
3.8
3.1
2.2
2.9
2.4
3.4
2.9
3.8
2.8
3.5
3.5
3.0

Totals

Crew
Size
3
2
2
4
2
3
4
2
4
2
4
2
4
4
3

47.5

ManHours
9.9
7.0
7.0
15.1
6.3
6.5
11.6
4.8
13.5
5.8
15.4
5.5
13.8
13.9
8.9

145.0

Cost Per
DL Hour
$
13.93
13.93
13.93
13.93
13.93
13.93
13.93
13.93
13.93
13.93
13.93
13.93
13.93
13.93
13.93

13.93

Total
Cost
137.91
97.51
97.51
210.06
87.48
91.10
161.59
66.86
188.33
80.24
213.96
76.89
192.79
193.91
124.12

2,020

Job Cost Sheet

Units produced
Start date
Finish date

50
6-Jul
20-Jul

Direct Material Cost Breakdown

Date Added
Direct Material Number
6-Jul
DM9
12-Jul
DM10

Totals
Total cost of goods sold
Cost per unit

DM Cost
782
508

Direct Labor Cost Breakdown

Date
DL Cost
7-Jul
$
138
7-Jul
98
9-Jul
98
9-Jul
210
10-Jul
87
10-Jul
91
12-Jul
162
12-Jul
67
13-Jul
188
13-Jul
80
15-Jul
214
15-Jul
77
18-Jul
193
18-Jul
194
19-Jul
124

Date
20-Jul

Overhead Cost Breakdown

Overhead Rate Total Man-Hours
$
12.64
145.0

$
1,290
$
2,020
5,143 Equals the Total of direct material, direct labor, and overhead
102.86

1,833 Overhead Rate * Total Man-Hours

Daily Cost Breakdown

$2,000

$1,800

$1,600

$1,400

$1,200

OH Cost
$1,000

DL Cost
DM Cost

$800

$600

$400

$200

21-Jul-13

20-Jul-13

19-Jul-13

18-Jul-13

17-Jul-13

16-Jul-13

15-Jul-13

14-Jul-13

13-Jul-13

12-Jul-13

11-Jul-13

9-Jul-13

10-Jul-13

8-Jul-13

7-Jul-13

6-Jul-13

$0

Notes:
1 Units Scrapped are those that are permanently lost during the production process. Typically due to damage or defect.
2 Quantity Per Item * Sales quantity + Units Scrapped.
3 Hours * Crew Size.
4 Man Hours * Cost Per DL Hour

5 In this example, overhead is applied on the basis of direct labor hours. This rate will be determined
during the budgeting phase. If actual overhead is above or below the applied amount for the year
then the difference must be reconciled in the financial statements.

WHITE CELLS ARE ADJUSTABLE

Kristoffer Burnett - Certified Management Accountant, 2009-2011

Job Order Costing Example

Item Name and Price
Item
Item1
Item2
Item3
Item4
Item5

Price
$ 168.00
289.00
170.00
282.00
$ 110.00

Bill of Materials
Item
Item1

Direct
Material
DM9
DM10

Quantity

Direct Material
Cost/Unit
5.18
1.67

3
6

Item2

DM4
DM9
DM5
DM3

8
1
3
6

Item3

DM7
DM5

3
9

1.28
4.75

Item4

DM5
DM1
DM2
DM8

3
10
6
1

4.75
2.16
6.74
7.44

Item5

DM8
DM10

2
9

Budgeted Direct Labor Data

Item
Item1
Item2
Item3
Item4
Item5

Hours
2.9
1.4
2.9
3.0
2.1

Budgeted Overhead Data

Item
Item1
Item2
Item3
Item4
Item5

OH Rate
$ 12.64
19.94
10.59
13.45
$ 10.82

Direct Labor
Cost/Hour
$
13.93
16.36
12.63
16.13
$
13.24

8.99
5.18
4.75
6.74

7.44
1.67