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  • BK Job Costing

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    Estonilo, Monica Benesa
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    - Job costing is a method of cost determination that accumulates direct material, direct labor, and factory overhead costs for each job or product. The total cost is divided by the number of units to determine the cost per unit. - It accumulates costs separately for each unique job or customer order. This allows costs to be tracked for specific jobs rather than in aggregate. - Journal entries are made to track raw material purchases, labor costs, overhead application, and variances between actual and applied overhead rates. - Formulas are used to calculate unit costs, cost of goods manufactured, and cost of goods sold.

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    BK JOB COSTING

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    - Job costing is a method of cost determination that accumulates direct material, direct labor, and factory overhead costs for each job or product. The total cost is divided by the number of units to determine the cost per unit. - It accumulates costs separately for each unique job or customer order. This allows costs to be tracked for specific jobs rather than in aggregate. - Journal entries are made to track raw material purchases, labor costs, overhead application, and variances between actual and applied overhead rates. - Formulas are used to calculate unit costs, cost of goods manufactured, and cost of goods sold.

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    © All Rights Reserved
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    15 views5 pages

    BK Job Costing

    Uploaded by

    Estonilo, Monica Benesa
    - Job costing is a method of cost determination that accumulates direct material, direct labor, and factory overhead costs for each job or product. The total cost is divided by the number of units to determine the cost per unit. - It accumulates costs separately for each unique job or customer order. This allows costs to be tracked for specific jobs rather than in aggregate. - Journal entries are made to track raw material purchases, labor costs, overhead application, and variances between actual and applied overhead rates. - Formulas are used to calculate unit costs, cost of goods manufactured, and cost of goods sold.

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    of 5

    JOB COSTING

    -METHOD OF COST DETERMINATION ( COST ACCUMUALTION- DIRECT MATERIALS, DIRECT LABOR,


    FACTORY OVER HEAD=TOTAL COST OF PRODUCTION

    *AFTER GETTING THE TOTAL COST OF PRODUCTION THEN WE CAN GET THE COST/UNIT THE FORMULA
    IS TOTAL COST DIVIDED BY THE NUMBER OF PRODUCTS MANUFACTURED

    *DIRECT MATERIAL PET UNIT= TOTAL DM COST DIVIDED BY # OF PRODUCT MANUFACTURED

    *DL/UNIT= TOTAL DL COST DIVIDED BY # PRODUCTS MANUFACTURED

    *FOH/UNIT= TOTAL COST FOH DIVIDED BY # PRODUCTS MANUFACTURED

    *DM/UNIT + DL/UNIT + FPH/UNIT= PRODUCT COST PER UNIT

    -ACCUMULATES COST OF PRODUCTION BY JOB-SOMETHING UNIQUE OR DISSIMILAR/ PERSONALIZA


    (ACCUMULATES COST ON SPECIFIC JOBE FOR EX. COST FOR CUSTOMER 1 IS THE TABLE 1 ONLY)
    (SEPERATING COST PER JOB) – HIGH VALUE

    -NORMAL COST SYSTEM- ACTUAL DM&DL, APPLIED ESTIMATED FOH

    -SUMMARY COST FORM- JOB ORDER COST SHEET WHICH SUMMARIZE THE DM, DL USED IN A JOB

    COMPANY NAME, JOB ORDER #, SPEFICIFICATION, PRODUCT,

    (DIRECT LABOR= HOURS TIMES PILA ANG PER HOUR)

    (FOH= TOTAL DL TIMES THE %)

    (SELLING PRICE= TOTAL COST TIMES MARK UP PERCENT)


    COST ACCOUNTING

    -JOB COSTING

    JOURNAL ENTRIES

    (PALIT MATERIALS) DR. RAW MATERIAL INV

    CR. ACCOUNTS PAYABLE

    (PUT IN PRODUCTION) WORK IN PROCESS

    RAW MATERIALS INV.

    (LABOR) SALARIES EXPENSE

    SALARIES PAYABLE

    WORK IN PROCESS

    SALARIES EXP

    (FOH) DEPRECIATION EXPENSE

    UTILITIES EXPENSE

    RENT EXPENSE

    ACCU DEP

    UTILITIES PAYABLE
    RENT PAYABLE

    (ACTUAL OVERHEAD COSTING- CLOSE THE ACCOUNTS)

    (STANDARD OR NORMAL COST)

    WIP

    OH APPLIED (PREDETERMINED OH RATE)

    END OF YEAR THERESE DOFFERNEC BETWEEN ACTUAL OVERHEAD COSTING AND OH APPLIED SO E
    CLOSE AND ACCOUNT

    DR. OH APPLIED

    CR. OH CONTROL

    IF THE DIFFERENCE IS IMMATERIAL THEN COST OF GOODS SOLD , IF MATERIAL WIP, FINISHED GOODS,
    COGS

    FORMULA
    UNIT COST-WIP DIVIDED BY TOTAL UNITS

    COGS= DM USED+DL+OVERHEAD= TOTAL MANUFACTURING COST + WIP BEGINNING MINUS WIP, END=
    COST OF GOODS MANUFACTURED + FINISHED GOODS, BEGINNING MINUS FG, END= COST OF GOODS
    SOLD
    PROBLEM 1 WORKBACK
    IF IN THE PROBLEM IS SILENT ASSUME, NORMAL OR STANDARD COSTING

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