Chp 3 Job Costing - Job Costing Chapter 3 1 Process Costing...

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Job Costing Chapter 3 1
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Process Costing Mass production Similar items Total costs are averaged over all units Examples Paint manufacturers Oil refineries Cereal manufacturers 2
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Job Costing Unique, custom products or small batches Total costs are accumulated by job Examples Hospitals Custom home builders Advertising agencies 3
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Examples of Process and Job Costing a. A manufacturer of fiberglass insulation b. A residential plumbing contractor c. A manufacturer of fiber optic cable d. A professional home builder e. A hospital 4
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Flow of Inventory Through a Manufacturing System Raw Materials Storeroom Work in process Production Department Finishe d Goods Ready for sale Cost of Goods Sold Sold 5
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Production Schedule for the Month of December Job Model Number Stock or Customer Quantity Schedule d Start Date Schedule d End date 603 X4 Cross-Trainer For stock 50 12/2 12/6 604 T5-0 Treadmill For stock 60 12/7 12/17 605 Custom T6-C Treadmill Gator FT 15 12/18 12/21 606 Custom S3-C Stair- Climber Gator FT 12 12/22 12/24 FACTORY CLOSED FOR HOLIDAYS and ANNUAL MAINTENANCE 12/25 12/31 6
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Bill of Materials Part Number Description Quantity Needed HRM50812 Heart rate monitor 50 LCD620 LCD entertainment screen 50 B4906 Front and rear rolling base 100 HG2567 Hand grips 100 FP689 Foot platform 100 Etc. 7 Job 603 CrossTrainer Quantity: 50 units
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Purchasing Process Purchasing determines ordering needs Shipping and receiving prepare receiving report Accounting matches invoice with purchase order Purchasing issues purchase order Accounting pays the invoice 8
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Job Cost Record Job Cost Record Job Number: 603 Customer: For stock Job Description: 50 units of X4 Elliptical Cross-Trainers Date Started: Dec. 2 Date Completed: _________ Manufacturing Cost Information: Cost Summary Direct Materials $ Direct Labor $ Manufacturing Overhead $ Total Job Cost $ Number of Units ÷ 50 units Cost per Unit $ Shipping Information: Date Quantity Shipped Units Remaining Cost Balance 9
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Work in Process Inventory JOB 560- Direct Materials Direct Labor MOH Total Job Cost Balance Sheet Life Fitness November 30 Assets: Liabilities and Owners Equity: Cash Accounts Payable Accounts Receivable Wages and Salaries Payable Raw Materials Inventory Other Liabilities Work in Process Inventory Finished Goods Inventory Common Stock Retained Earnings Property and Equipment Total Assets Total Liabilities and Owner’s Equity JOB 561- Direct Materials Direct Labor MOH Total Job Cost JOB 562- Direct Materials Direct Labor MOH Total Job Cost JOB 563- Direct Materials Direct Labor MOH Total Job Cost The job cost records on incomplete jobs sum to the total Work in Process Inventory shown on the balance sheet 10
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Materials Requisition Materials Requisition Number: #7568 Date: 12/2 Job: 603 Part Number Description Quantity Unit Cost Amount HRM50812 Heart rate monitor 50 $60 $3,000 LCD620 LCD entertainment screen 50 $100 5,000 B4906 Front and rear rolling base 100 $5 500 Total $8,500 11
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Raw Materials Record Updated for Materials Received and Used Raw Materials Record Item No. HRM50812 Description: Heart rate monitor Received Used
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Chp 3 Job Costing - Job Costing Chapter 3 1 Process Costing...

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