Kế toán, kiểm toán - Chapter 15: Job order costing and analysis

Financial and Managerial AccountingWild, Shaw, and ChiappettaFourth Edition Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinChapter 15Job Order Costing and AnalysisConceptual Learning ObjectivesC1: Describe important features of job order production.C2: Explain job cost sheets and how they are used in job order cost accounting.15-*A1: Apply job order costing in pricing  services. Analytical Learning Objectives15-*P1: Describe and record the flow of materials costs in job order cost accounting.P2: Describe and record the flow of labor costs in job order cost accounting. P3: Describe and record the flow of overhead costs in job order cost accounting. P4: Determine adjustments for overapplied and underapplied factory overhead.Procedural Learning Objectives15-*ProcessCostingJobCosting Used for production of large, unique, or  high-cost items. Built to order rather than mass produced. Many costs can be directly traced to each job.Job Order Production Chapter 16C 115-*ProcessCostingJobCosting Typical job order cost applications: Special-order printing Building construction Also used in service industry Hospitals Law firms Chapter 16C 1Job Order Manufacturing15-*Receive order from customersPredict cost to complete jobNegotiate a sales price and decide whether to pursue the job.Schedule the production of jobEvents in Job Order CostingC115-* Goods in ProcessCost of GoodsSoldLaborMaterialsIndirectIndirectFinishedGoodsFactoryOverheadDirectDirectAllocateC 1 Job Order Production Activities15-*Job Cost SheetC 215-* Road Warriors uses a predetermined overhead rate (POHR) based on direct labor cost to apply overhead to jobs.Estimated total manufacturingoverhead cost for the coming periodEstimated total direct labor costsfor the coming periodPOHR =POHR = = 160% of direct labor $$200,000$125,000Predetermined OverheadAllocation Rate FormulaP315-*Materials Ledger CardsMaterials Ledger CardsMaterials Ledger CardsMaterialsRequisitionDirect materialsThe materials requisition indicates the cost of direct materialsto charge tojobsand the cost of indirect materials to charge to overhead.Indirect materialsJob Cost SheetsJob Cost SheetsJob Cost SheetsJob Cost SheetsFactory Overhead AccountCost Flows and DocumentsP115-*Employee time tickets indicate the cost of direct laborto charge tojobsand the cost of indirect labor to charge to overhead.Job Cost SheetsFactory Overhead AccountJob Cost SheetsJob Cost SheetsJob Cost SheetsDirect LaborIndirect LaborEmployee Time TicketEmployee Time TicketEmployee Time TicketEmployee Time TicketP3Cost Flows and Documents15-*IncurredDirectMaterial Actual Applied factory factoryoverhead overhead=/an adjustment is needed. We will look at how to accomplish this later.WhenDirectLaborDirectLaborIndirect Labor ActualOverheadCostsOverheadOverheadApplied to Work inProcessP4Summary of Cost Flows15-*Overhead ApplicationOverhead is notincurred uniformlyduring the year.Actual overhead ratemight vary from month to month.Predetermined ratemakes it possible toestimate job costs sooner.Reasons for using apredetermined overhead rateP415-*Adjusting Cost of Goods Sold for underapplied or overapplied overheadAdjusting of Overapplied and Underapplied OverheadP415-*End of Chapter 1515-*