Académique Documents
Professionnel Documents
Culture Documents
A Presentation
By
“Against The
Dawn”
Group Members
• Purpose
12
Cost Systems
13
Comparing Job Order
and Process
Production
Job Order Systems Process Systems
17
Cost Flow
Direct
Materials
Indirect
Cost of
Labor Direct Goods
Sold
18
Accounting for
Materials
Raw Materials Work in Process
Material Direct Direct
Purchases Material Material
Indirect
Material
Manufacturing Overhead
Actual
Overhead
Costs
19
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
20
SUBSIDIARY MATERIALS LEDGER RECORD
C865
Item No._________ Canvas
Description: (black)
______________________
Received Used Balance
Mat
Date
7/10 Units
7000 Cost 70,000
$10 Total Req No Units Cost Total 7000
Units$10Cost Total
70,000
SUBSIDIARY MATERIALS LEDGER RECORD
T444
Item No._________ Thread
Description: (black)
______________________
Received Used Balance
Mat
Date
7/10 Units
50 Cost
$20 Total
1,000 Req No Units Cost Total 50 Units$20 Cost1,000
Tota
21
Materials Requisition
• Used to authorize the use of materials
on a job
• Serves as source document for
recording material usage
22
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
23
Raw Materials
Beginning bal 35,000
Purchases 70,000
1,000 63,300 Requisitioned
24
Job Cost Record
Job C ost R eco rd
Job N o.562
C ustom er N ame and Address Happy Campers
Job D escription 2,000 backpacks
D ate P rom ised D ate S tarted D ate C o m pleted
D irect Materials D irect Labor Overhead C o sts Applied
Tim e
R equisi- Ticket
D ate 8966
8/03 tion N o. 63,000
Am ount N o. Am ount D ate R ate Am ount
Manufacturing Overhead
Actual
Overhead
Costs
26
Labor Time Ticket
LABOR TIME RECORD
J. Khan
Employee ___________ K13
No. ______
Job J9738
_______
27
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
30
Accounting for
Manufacturing
ManufacturingOverhead
Overhead Work in Process
Actual Overhead Direct
Overhead Applied to Material
Costs Work in Direct
Process Labor
Overhead
Predetermined
Manufacturing
Overhead Rate
Total estimated manufacturing overhead costs
Total estimated quantity of the manufacturing
overhead allocation base
32
Allocate Manufacturing
Overhead
33
Total estimated manufacturing overhead costs
Total estimated quantity of the manufacturing
overhead allocation base
34
Amount to allocate to the job:
$1.25 x $64,000 = $80,000
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
35
Manufacturing Overhead
Actual Overhead 83,000 80,000 Overhead Applied
Balance 3,000
36
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
37
Aamir Imrani
(29)
Objective 4
39
Accounting for Finished
Goods
Work in Process Finished Goods
•Direct Material
Cost of Cost of Cost of
•Direct Labor Goods Goods Goods Sold
•Manufacturing Manufactured Manufactured
Overhead
40
Materials Work in process Finished goods
17,000 Job 90- 44,000 61,000
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
41
Materials Work in process Finished goods
17,000 Job 90- 44,000 61,000
55,000
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
c. Cash 195,000
Accounts receivable 195,000
42
Materials Work in process Finished goods
17,000 49,000 44,000 61,000
55,000 42,000
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
43
Job C ost R eco rd
Job N o.91
C ustom er N ame and AddressWicom Company
Job D escription components
D ate P rom ised D ate S tarted D ate C o m pleted
D irect Materials D irect Labor Overhead C o sts Applied
Tim e
R equisi- Ticket
D ate 8966
e. tion N o. 38,000
Am ount N o. Am ount D ate R ate Am ount
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
45
Materials Work in process Finished goods
17,000 49,000 44,000 61,000
55,000 42,000
34,000
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
46
Job C ost R eco rd
Job N o.91
C ustom er N ame and AddressWicom Company
components
Job D escription
D ate P rom ised D ate S tarted D ate C o m pleted
D irect Materials D irect Labor Overhead C o sts Applied
Tim e
R equisi- Ticket
D
e.ate tion N o. 38,000
8966 Am ount N o. Am ount D ate R ate Am ount
g. T523 28,000
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
48
Materials Work in process Finished goods
17,000 49,000 44,000 61,000
55,000 42,000
34,000
40,800
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
49
Job C ost R eco rd
Job N o.91
C ustom er N ame and AddressWicom Company
components
Job D escription
D ate P rom ised D ate S tarted D ate C o m pleted
D irect Materials D irect Labor Overhead C o sts Applied
Tim e
R equisi- Ticket
D
e.ate tion N o. 38,000
8966 Am ount N o. Am ount D ate R ate Am ount
g. T523 28,000
i. 120% 33,600
51
Materials Work in process Finished goods
17,000 49,000 44,000 61,200 61,000
55,000 42,000 61,200 61,200
34,000
40,800
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
52
Manufacturing overhead
e. 7,000 i. 40,800
g.22,000
h. 7,500
4,300 Bal 4,300
Bal 0
GENERAL JOURNAL
DATE DESCRIPTION REF DEBIT CREDIT
53
Materials Work in process Finished goods
17,000 49,000 44,000 61,200 61,000
55,000 42,000 61,200 61,200
34,000
23,000 40,800 61,000
99,600
54
Uzair Urqam
(41)
Objective 5
56
1. Direct labor cost rate:
$2,550,000 / 17,000 hrs = $150
57
2. Predicted cost of job:
Direct labor (220 hrs x $150) $33,000
Indirect cost allocation
($33,000 x 60%) 19,800
$52,800
58
3. Bid:
Cost $52,800
Desired profit(50%) $26,400
$79,200
59
End of Job Order
Costing
I’m thinking about
some leisure time
So “No Questions”
Please!!!!!!!