tailieunhanh - Lecture Fundamentals of cost accounting - Chapter 7: Job costing

Chapter 7 - Job costing. In chapter 6, we developed the basics of a cost management system designed to report the costs of products and services. In this chapter we describe a job costing system used in many service and discrete manufacturing settings. | Job Costing Chapter 7 Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin In Chapter 6, we developed the basics of a cost management system designed to report the costs of products and services. In this chapter we describe a job costing system used in many service and discrete manufacturing settings. Defining a Job . 1 Explain what job and job shop mean. Job: Unit of a product that is easily distinguishable from other units Job shop: Firm that produces jobs 7 - A job is an easily distinguished cost object for which a cost is desired. A job shop is a firm that produces jobs. Production Process at InShape . 2 Assign costs in a job cost system. Suppose InShape, Inc. manufactures custom workout and training equipment for schools and gyms. 7 - Suppose InShape produces custom sports equipment for schools and athletic facilities. Suppose InShape begins with jobs 12-3, 01-01, and 01-02. Records of Costs at InShape Materials Work-in-process Direct materials Raw materials Indirect materials Overhead 12-03 01-01 01-02 Total WIP LO2 7 - Transfers out of raw materials inventory are direct materials into jobs 12-03, 01-01, and 01-02 (work-in-process subsidiary accounts). Indirect materials are recorded in an overhead control account. Records of Costs at InShape Labor Work-in-process Direct labor Labor Indirect labor Overhead 12-03 01-01 01-02 Total WIP LO2 7 - Direct labor is recorded to jobs 12-03, 01-01, and 01-02 (work-in-process subsidiary accounts). Indirect labor is recorded in the overhead control account. Records of Costs at InShape Overhead Work-in-process Overhead 12-03 01-01 01-02 Total WIP OH costs are applied to each job using the POHR. LO2 7 - And, remember, overhead costs will be charged to and recorded in the subsidiary ledger accounts for jobs 12-03, 01-01, and 01-02 using a predetermined overhead rate. Predetermined Rate . 3 Account for overhead using predetermined . | Job Costing Chapter 7 Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin In Chapter 6, we developed the basics of a cost management system designed to report the costs of products and services. In this chapter we describe a job costing system used in many service and discrete manufacturing settings. Defining a Job . 1 Explain what job and job shop mean. Job: Unit of a product that is easily distinguishable from other units Job shop: Firm that produces jobs 7 - A job is an easily distinguished cost object for which a cost is desired. A job shop is a firm that produces jobs. Production Process at InShape . 2 Assign costs in a job cost system. Suppose InShape, Inc. manufactures custom workout and training equipment for schools and gyms. 7 - Suppose InShape produces custom sports equipment for schools and athletic facilities. Suppose InShape begins with jobs 12-3, 01-01, and 01-02. Records of Costs at InShape Materials .