Job Cost Sheets A job cost sheet is used to accumulate the following costs for each job: direct materials, direct labor and overhead. It is an internal document, so the format varies by company. Some companies prefer a detailed cost sheet that shows the details for direct materials (such as quantity, type, and requisition numbers for each material used) and details for direct labor (such as hours and wage rate for each employee who worked on the job). Other companies prefer a summary showing a total for direct materials and a total for direct labor. Overhead applied is reported on all job cost sheets. Recall that firms use normal costing to determine unit cost. Normal costing requires the use of predetermined overhead rates, which are calculated as follows: Predetermined Overhead Rate = Estimated Annual Overhead Estimated Cost Driver APPLY THE CONCEPTS: Complete the job cost sheets for In the Doghouse Company In the Doghouse Company builds doghouses. They have three sizes: small, medium and large. Each size can be built in one of two styles, standard or deluxe. All doghouses are built with treated lumber and have shingled roofs. The deluxe model is insulated and has a covered porch. In the Doghouse sells mostly to local hardware and garden stores. The costs for direct materials and direct labor for each type of doghouse are shown in the table below. The includes costs for lumber, shingles, stain or paint, and insulation. Nails and glue are also used in the construction and are considered which make them part of overhead. The company employs two carpenters and a part-time student to maintain the equipment and clean the shop. The carpenters' wages are The student's wages are and, therefore, part of overhead. Other overhead costs include depreciation of equipment and the building, insurance, utilities, and taxes. Overhead is applied at 10% of direct labor cost. In the Doghouse summarizes costs by direct materials, direct labor, and overhead on its job cost sheets. Direct Materials Direct Labor Standard: Small $64 $60 Medium 111 90 Large 135 150 Deluxe: Small $78 $120 Medium 152 180 Large 256 240 At the beginning of July, the company has one job, job number 605, in progress from the previous month. This job is for an order of 20 small, standard doghouses. As of July 1, $512.00 of direct materials have been used, $480.00 of direct labor have been charged to the job and $48.00 of overhead was applied to the job. Click on the link below to get more detail on job number 605. During July, In the Doghouse received an order for 16 medium, deluxe doghouses. This is job number 701 and was completed by the end of the month. Another order was received during the month, job 702, for 12 large, standard doghouses. At the end of July, job 702 was still in process. $324 of direct materials has been used, $360 of direct labor has been charged to the job, and overhead was applied to job 702 using the predetermined overhead rate of 10% of direct labor cost. Complete the following job cost sheets for the month of July In the Doghouse and answer the following questions. Job 605 20 small, standard doghouses Direct materials Direct labor Overhead Total job cost Job 701 16 medium, deluxe doghouses Direct materials Direct labor Overhead Total job cost
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
A job cost sheet is used to accumulate the following costs for each job: direct materials, direct labor and overhead. It is an internal document, so the format varies by company. Some companies prefer a detailed cost sheet that shows the details for direct materials (such as quantity, type, and requisition numbers for each material used) and details for direct labor (such as hours and wage rate for each employee who worked on the job). Other companies prefer a summary showing a total for direct materials and a total for direct labor. Overhead applied is reported on all job cost sheets. Recall that firms use normal costing to determine unit cost. Normal costing requires the use of predetermined overhead rates, which are calculated as follows:
| Predetermined Overhead Rate = | Estimated Annual Overhead |
| Estimated Cost Driver |
APPLY THE CONCEPTS: Complete the job cost sheets for In the Doghouse Company
In the Doghouse Company builds doghouses. They have three sizes: small, medium and large. Each size can be built in one of two styles, standard or deluxe. All doghouses are built with treated lumber and have shingled roofs. The deluxe model is insulated and has a covered porch. In the Doghouse sells mostly to local hardware and garden stores.
The costs for direct materials and direct labor for each type of doghouse are shown in the table below. The
includes costs for lumber, shingles, stain or paint, and insulation. Nails and glue are also used in the construction and are considered
which make them part of overhead. The company employs two carpenters and a part-time student to maintain the equipment and clean the shop. The carpenters' wages are
The student's wages are
and, therefore, part of overhead. Other overhead costs include
| Direct Materials |
Direct Labor |
|
| Standard: | ||
| Small | $64 | $60 |
| Medium | 111 | 90 |
| Large | 135 | 150 |
| Deluxe: | ||
| Small | $78 | $120 |
| Medium | 152 | 180 |
| Large | 256 | 240 |
At the beginning of July, the company has one job, job number 605, in progress from the previous month. This job is for an order of 20 small, standard doghouses. As of July 1, $512.00 of direct materials have been used, $480.00 of direct labor have been charged to the job and $48.00 of overhead was applied to the job. Click on the link below to get more detail on job number 605.
During July, In the Doghouse received an order for 16 medium, deluxe doghouses. This is job number 701 and was completed by the end of the month.
Another order was received during the month, job 702, for 12 large, standard doghouses. At the end of July, job 702 was still in process. $324 of direct materials has been used, $360 of direct labor has been charged to the job, and overhead was applied to job 702 using the predetermined overhead rate of 10% of direct labor cost.
Complete the following job cost sheets for the month of July In the Doghouse and answer the following questions.
| Job 605 | ||
| 20 small, standard doghouses | ||
| Direct materials | ||
| Direct labor | ||
| Overhead | ||
| Total job cost |
| Job 701 | ||
| 16 medium, deluxe doghouses | ||
| Direct materials | ||
| Direct labor | ||
| Overhead | ||
| Total job cost |
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