Chapter 2 Study Plan

Study Plan: Job Costing

Knowledge Targets

I can define the following terms as they relate to our unit:

Applied Overhead Goods (or work)  in process

Finished Goods Job Costing

Allocation Base Cost driver Cost of goods sold

Under-applied Overhead

Predetermined overhead rate Cost of Goods Sold Cost of Goods Manufactured

Over-applied Overhead

Gross Margin (or Profit) Direct materials Direct Labor Actual Overhead
 

Reasoning Targets

  • I can identify job costs as direct materials, direct labor and overhead.
  • I can track job costs from raw materials to goods in process to finished goods and cost of goods sold.
  • I can identify accounts to use in recording the flow of job costs.
  • I can identify the allocation base used in calculating predetermined overhead rate.
  • I can identify the difference between actual overhead and applied overhead.
  • I can determine under- or over-applied overhead.
  • I can understand a manufacturing statement with cost of goods manufactured calculated.


Skill Targets

  • I can prepare and post journal entries for job costing from raw materials to cost of goods sold.
  • I can calculate the predetermined overhead rate for a company.
  • I can calculate the amount of applied overhead using the predetermined overhead rate.
  • I can calculate the amount of under- or over-applied overhead using applied overhead and actual overhead.
  • I can compute the total cost of a job and determine the job’s gross margin.
  • I can prepare a manufacturing statement, schedule of cost of goods sold, and income statement for job costing.


Click Job Cost Study Plan for a printable copy.

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