Professional Documents
Culture Documents
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Learning Objectives
Understand job-order costing and identify companies that would use
job-order costing method.
Identify the documents used in a job-order costing system.
Compute predetermined overhead rates and explain why estimated
overhead costs (rather than actual overhead costs) are used in the
Job-Order Costing costing process.
Understand the flow of costs in a job-order costing system
Prepare schedules of cost of goods manufactured and cost of goods sold.
Compute underapplied or overapplied Manufacturing overhead cost and
ACCT 5113 S1 2017 show how to close the balance to the appropriate accounts.
Identify companies which use more than one overhead rate and reasons
behind this
Limitations of volume-based overhead rates and ways to overcome
these.
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Supporting Documents:
Materials Requisition Form
Employee Time Sheet
Applied Manufacturing Overhead
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Job-Order Costing: Document Flow Summary Job-Order Costing: Document Flow Summary
An
Materials employees
used may be Direct Job Cost time may be either Direct Job Cost
either direct or materials Sheets
direct or Labor Sheets
indirect. indirect.
Materials Employee Time
Requisition Ticket
Manufacturing Manufacturing
Indirect Indirect
Overhead Overhead
materials Labor
Account Account
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Materials Indirect
Requisition Material POHR
rate used
to apply
Other Manufacturing overhead Job Cost
Actual OH Overhead
Sheets
Charges Account
Employee Indirect
Time Ticket Labor
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Beginning raw Direct materials Beginning work in Beginning raw Direct materials Beginning work in
materials inventory + Direct labor process inventory materials inventory + Direct labor process inventory
+ Raw materials + Mfg. overhead applied + Total manufacturing + Raw materials + Mfg. overhead applied + Total manufacturing
purchased = Total manufacturing costs purchased = Total manufacturing costs
= Raw materials costs = Total work in = Raw materials costs = Total work in
available for use process for the available for use process for the
in production period in production period
Ending raw materials Ending raw materials Ending work in
inventory All manufacturing costs added to inventory process inventory
= Raw materials used production during the period are = Raw materials used = Cost of goods
in production
added to the beginning balance of Costs associated
in production with the goods that manufactured
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c. $60,000 overapplied.
Cost of Cost of
d. $60,000 underapplied. Goods Sold Goods Sold
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