Job order Costing
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n job order costing, the cost of each order produced for a given customer or the cost of each lot to be placed in stock is recorded on a job order cost sheet, sometimes called simply a cost sheet. The cost sheets are subsidiary records which are controlled by the work in process account. Although several jobs or orders may be going through a factory at the same time, each cost sheet is designed to collect the cost of materials, labour, and factory overhead charged to a specific job. Each cost sheet is assigned a job number, which is placed on each materials requisition and labour time ticket used in connection with a job. These forms for materials and labour are totaled daily or weekly by job number, for summary journal entries, and the details are entered on the cost sheets. The factory overhead entered on the cost sheets is preferably computed on the basis of an estimate rather than actual costs incurred. As discussed later in the chapter, the amount computed is referred to as applied factory overhead.
Costs sheets differ in form, content, and arrangement in each business. An example is shown as below :
Cost Sheet for a Non departmentalized Plant
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RAHIM COMPANY Gulberg, Lahore. Job Order No. 7625 FOR: Anis Construction Co. DATED ORDERED: 10/1 PRODUCT: # 14 Maple Drain Boards DATED STARTED: 14/1 SPECIFICATION: 12' X 20" x 1" Clear Finishes DATE WANTED: 22/1 QUANTITY: 10 DATE COMPLETED: 18/1 |
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DIRECT MATERIALS |
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DATE |
REQ. NO. |
AMOUNT |
TOTAL |
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14/1 |
516 |
1,420.00 |
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17/1 |
517 |
780.00 |
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18/1 |
518 |
310.00 |
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2,510.00 |
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DIRECT LABOUR |
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DATE |
HOURS |
COST |
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14/1 |
40 |
320.00 |
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15/1 |
32 |
25 6.00 |
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16/1 |
36 |
288.00 |
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17/1 |
40 |
320.00 |
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18/1 |
48 |
384.00 |
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196 |
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1,568.00 |
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FACTORY OVERHEAD APPLIED |
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RATE OF APPLICATIONS |
COST |
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18/1 |
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1,176.00 |
1,176.00 |
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Direct Materials |
2,510.00 |
Selling Price |
7.860.00 |
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Direct labour |
1,568.00 |
Factory Cost |
5,254.00 |
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Factory Overhead |
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Marketing Expense |
776.00 |
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Applied |
1,176.00 |
Admin. Expense |
420.00 |
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Cost to make |
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Total Factory Cost |
5,254.00 |
and sell |
6,450.00 |
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Profit |
1,410.00 |
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Download Files
- Introduction, Organization and overview of the course.
- concept and classification of costs.
- Cost of goods sold, cost of good manufactured
- Cost of goods sold, cost of good manufactured
- Costing and control of material,
- Costing and control of material,
- costing and control of labour,
- costing and control of labour,
- costing and control of factory over head
- Factory Overhead Departmentalization
- product cost accumulation systems
- product cost accumulation systems
- Job order Costing
- Job order Costing
- Job order Costing
- Job order Costing
- Process costing
- Process costing
- Process costing
- Process costing
- Joint product and by product costing
- Joint product and by product costing
- Joint product and by product costing
- Joint product and by product costing
- Budgeting
- Budgeting
- Budgeting
- Budgeting
- Direct and absorption costing
- Direct and absorption costing
- Break-even analysis and cost-volume-profit analysis
- Break-even analysis and cost-volume-profit analysis
- Chapters 32
- Department Noon Business School
- Teacher
Shahid Mahmood
