A job order cost sheet for Ivanhoe Company is shown below. Job No. 92 For 2,000 Units Date Direct Materials Direct Labor Manufacturing Overhead Beg. bal. Jan. 1 5,500 7,000 4,900 8 7,000 12 8,000 6,800
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
A
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Job No. 92
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For 2,000 Units
|
|||||
|---|---|---|---|---|---|---|
|
Date |
Direct
Materials |
Direct
Labor |
Manufacturing
Overhead |
|||
| Beg. bal. Jan. 1 | 5,500 | 7,000 | 4,900 | |||
| 8 | 7,000 | |||||
| 12 | 8,000 | 6,800 | ||||
| 25 | 2,400 | |||||
| 27 | 4,000 | 3,400 | ||||
| 14,900 | 19,000 | 15,100 |
| Cost of completed job: | ||
|---|---|---|
| Direct materials | $14,900 | |
| Direct labor | 19,000 | |
| Manufacturing overhead | 15,100 | |
| Total cost | $49,000 | |
| Unit cost ($49,000 ÷ 2,000) | $24.50 |
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Date
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Account Titles and Explanation
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Debit
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Credit
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|---|---|---|---|
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Jan. 31
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enter an account title to record raw materials used
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enter a debit amount
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enter a credit amount
|
|
enter an account title to record raw materials used
|
enter a debit amount
|
enter a credit amount
|
|
|
(To record raw materials used)
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|||
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31
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enter an account title to record factory labor used
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record factory labor used
|
enter a debit amount
|
enter a credit amount
|
|
|
(To record factory labor used)
|
|||
|
31
|
enter an account title to record manufacturing overhead
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record manufacturing overhead
|
enter a debit amount
|
enter a credit amount
|
|
|
(To record manufacturing overhead)
|
|||
|
31
|
enter an account title to record job completed
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record job completed
|
enter a debit amount
|
enter a credit amount
|
|
|
(To record job completed)
|
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