JobOrderCostingChapter4IntroductionHowmuchdoesitcost?Managersaskthisquestionformanypurposes,includingformulatingoverallstrategies,productandservice-emphasisdecisions,andpricingdecisions.Thischapterpresentsbasicconceptsofjobcosting.LearningObjectivesDescribethebuildingblockconceptsofcostingsystemsDistinguishbetweenjobcostingandprocesscostingOutlineaseven-stepapproachtojobcostingDistinguishactualcostingfromnormalcostingLearningObjectivesTracktheflowofcostsinajob-costingsystemProrateend-of-periodunder-oroverallocatedindirectcostsusingalternativemethodsApplyvariationsofnormalcosting成本核算流程－對外報告1、按照成本計算目的，確定成本核算對象，如產(chǎn)品種類、產(chǎn)品批別等。2、劃分生產(chǎn)成本和期間費用的界限，生產(chǎn)成本指應(yīng)計入產(chǎn)品成本的那部分費用。3、在生產(chǎn)成本中，劃分直接成本和間接成本，即為每個成本核算對象確定直接成本項目（如直接材料、直接人工等）。成本核算流程－對外報告4、帳戶設(shè)置生產(chǎn)成本基本生產(chǎn)成本：按成本核算對象開設(shè)生產(chǎn)成本明細帳（成本計算單）。輔助生產(chǎn)成本：按輔助生產(chǎn)車間種類（如供水、供電、運輸、機修等）開設(shè)明細帳。制造費用按不同車間、部門開設(shè)明細帳。成本核算流程－對外報告一項成本費用發(fā)生生產(chǎn)成本還是期間費用？期間費用損益表——管理費用——銷售費用——財務(wù)費用基本生產(chǎn)成本還是輔助生產(chǎn)成本？成本核算流程－對外報告輔助生產(chǎn)成本明細帳直接成本還是間接成本？基本生產(chǎn)成本明細帳制造費用明細帳當期損益成本核算流程－對外報告---基本生產(chǎn)成本明細帳（成本計算單）完工產(chǎn)品成本期末在產(chǎn)品成本損益表——銷售成本資產(chǎn)負債表——存貨LearningObjective1 DescribethebuildingblockconceptsofcostingsystemsBuildingBlockConceptsofCostingSystemsThefollowingfivetermsconstitutethebuildingblocksthatwillbeusedinthischapter:Acostobjectisanythingforwhichaseparatemeasurementofcostsisdesired.BuildingBlockConceptsofCostingSystemsDirectcostsofacostobjectarecoststhatarerelatedtotheparticularcostobjectandcanbetracedtoitinaneconomicallyfeasibleway.Indirectcostsofacostobjectarecoststhatarerelatedtotheparticularcostobjectbutcannotbetracedtoitinaneconomicallyfeasibleway.BuildingBlockConceptsofCostingSystemsTherelationshipamongthesethreeconceptsisasfollows:DirectCostsCostTracingCostObjectIndirectCostsCostAllocationCostAssignmentCostpoolisagroupingofindividualcostitems.Costallocationbaseisafactorthatisthecommondenominatorforsystematicallylinkinganindirectcostorgroupofindirectcoststoacostobject.BuildingBlockConceptsofCostingSystemsLearningObjective2DistinguishbetweenjobcostingandprocesscostingJob-CostingandProcess-CostingSystemsTherearetwobasicsystemsusedtoassigncoststoproductsorservices:JobcostingProcesscostingJob-CostingandProcess-CostingSystemsInajob-costingsystem,thecostobjectisanindividualunit,batch,orlotofadistinctproductorservicecalledajob.Inprocesscosting,thecostobjectismassesofidenticalorsimilarunitsoraproductorservice.Job-CostingandProcess-CostingSystemsProcesscostingallocatescostsamongalltheproductsmanufacturedduringthatperiod.Job-CostingandProcess-CostingSystemsJob-costingProcess-costingsystemsystemDistinctunitsMassesofidenticalofaproductorsimilarunitsofaorserviceproductorserviceLearningObjective3Outlineaseven-stepapproachtojobcostingGeneralApproachtoJobCostingThefollowingseven-stepsapproachisusedtoassignactualcoststoindividualjobs:Identifythechosencostobject(s).Identifythedirectcostsofthejob.Selectthecost-allocationbase(s).Identifytheindirectcostsassociatedwitheachcost-allocationbase.GeneralApproachtoJobCostingComputetherateperunitofeachcost-allocationbaseusedtoallocateindirectcoststothejob.Computetheindirectcostsallocatedtothejob.Computethecostofthejobbyaddingalldirectandindirectcostsassignedtoit.GeneralApproachtoJobCostingD.L.Sportsmanufacturesvarioussportinggoods.D.L.isplanningtosellabatchof25specialmachines(Job100)toHealthyGymfor$104,800.AkeyissueforD.L.Sportsindeterminingthispriceisthecostofdoingthejob.GeneralApproachtoJobCostingStep1:ThecostobjectisJob100.Step2:IdentifythedirectcostsofJob100.Directmaterial=$45,000Directmanufacturinglabor=$14,000GeneralApproachtoJobCostingStep3:Selectthecost-allocationbase.D.L.chosemachineshoursastheonlyallocationbaseforlinkingallindirectmanufacturingcoststojobs.Job100used500machinehours.2,480machinehourswereusedbyalljobs.GeneralApproachtoJobCostingStep4:Identifytheindirectcosts.Actualmanufacturingoverheadcostswere$65,100.Step5:Computetherateperunit.Actualindirectcostrateis$65,100÷÷2,480=$26.25permachinehour.GeneralApproachtoJobCostingStep6:Computetheindirectcostsallocatedtothejob.$26.25permachinehour××500hours=$13,125GeneralApproachtoJobCostingStep7:ComputethecostofJobNo.100.Directmaterials$45,000Directlabor14,000Factoryoverhead13,125Total$72,125GeneralApproachtoJobCostingWhatisthegrossmarginofthisjob?Revenues$104,800Costofgoodssold72,125Grossmargin$32,675Whatisthegrossmarginpercentage?$32,675÷÷$104,800=31.2%TwoMajorCostObjectsProductsResponsibilitycentersWhatareSourceDocuments?Theyaretheoriginalrecordsthatsupportjournalentriesinanaccountingsystem.WhatisaJobCostRecord?Itisadocumentthatrecordsandaccumulatesallthecostsassignedtoaspecificjob.Itisthebasicrecordforproductcosting.WhatisaMaterialsRequisitionRecord?Itistheformusedtochargejobcostrecordsanddepartmentsforthecostofdirectmaterialsusedonspecificjobs.WhatisaLaborTimeRecord?Itisusedtochargejobcostrecordsanddepartmentsforlabortimeusedonspecificjobs.Itshowsthetimeeachemployeespentonindividualjobs.LearningObjective4DistinguishactualcostingfromnormalcostingActualCostingSystem...isajob-costingsystemthatusesactualcoststodeterminethecostofindividualjobs.Actualcostingisamethodofjobcostingthattracesindirectcoststoacostobjectbyusingtheactualdirect-costrate(s)timestheactualquantityofthedirectcostinput(s).NormalCosting...isacostingmethodthatallocatesindirectcostsbasedonthebudgetedindirect-costrate(s)timestheactualquantityofthecostallocationbase(s).NormalCostingAssumethatD.L.Sportsbudgets$60,000fortotalmanufacturingoverheadcostsand2,400machinehours.Whatisthebudgetedindirect-costrate?$60,000÷÷2,400=$25perhourHowmuchindirectcostwasallocatedtoJob100?NormalCosting500machinehours×$25=$12,500WhatisthecostofJob100undernormalcosting?Directmaterials45,000Directlabor14,000Factoryoverhead12,500Total$71,500LongerTimePeriodUsedtoComputeIndirect-CostRatesThenumeratorreason(indirectcosts):Theshortertheperiod,thegreatertheinfluenceofseasonalpatternsonthelevelofcosts.Thedenominatorreason(quantityoftheallocationbase):Theneedtospreadmonthlyfixedindirectcostsoverfluctuatinglevelsofoutput.LearningObjective5Tracktheflowofcostsinajob-costingsystemGeneralLedgerandSubsidiaryLedgersTheWork-in-ProcessControlaccountpresentsthetotalsoftheseparatejob-costrecordspertainingtoallunfinishedjobs.Thejob-costrecordandWork-in-ProcessControlaccounttrackjobcostsfromthetimejobsarestarteduntiltheyarecompleted.TransactionsPurchaseofConversionintoMaterialsWork-in-ProcessandOtherInventoryManufacturingInputsConversionintoSaleofFinishedFinishedGoodsGoodsInventoryTransactionsPurchaseof$80,000worthofmaterials(directandindirect)oncredit.MaterialsAccountsPayableControlControl1.80,0001.80,000TransactionsMaterialscosting$70,000weresenttothemanufacturingplantfloor.$45,000wereissuedtoJobNo.100and$10,000toJob102.$15,000ofindirectmaterialswereissued.Whatisthejournalentry?TransactionsWork-in-ProcessControl:JobNo.10045,000JobNo.10210,000FactoryOverheadControl15,000MaterialsControl70,000TransactionsMaterialsWork-in-ProcessControlControl1.80,0002.70,0002.55,000ManufacturingOverheadControlJob1002.15,0002.45,000TransactionsTotalmanufacturingpayrollfortheperiodwas$22,000.JobNo.100incurreddirectlaborcostsof$14,000andJobNo.102incurreddirectlaborcostsof$3,000.$5,000ofindirectlaborwasalsoincurred.Whatisthejournalentry?TransactionsWork-in-ProcessControl:JobNo.10014,000JobNo.1023,000ManufacturingOverheadControl5,000WagesPayable22,000TransactionsWagesPayableWork-in-ProcessControlControl3.22,0002.55,0003.17,000ManufacturingOverheadControlJob1002.15,0002.45,0003.5,0003.14,000TransactionsWagespayablewerepaid.WagesPayableControl22,000CashControl22,000WagesPayableCashControlControl4.22,0003.22,0004.22,000TransactionsAssumethatdepreciationfortheperiodis$26,000.Othermanufacturingoverheadincurredamountedto$19,100.Whatisthejournalentry?TransactionsManufacturingOverheadControl45,100AccumulatedDepreciationControl26,000VariousAccounts19,100WhatisthebalanceoftheManufacturingOverheadControl?TransactionsManufacturingOverheadControl2.15,0003.5,0005.45,100Bal.65,100Transactions$62,000ofoverheadwasallocatedtothevariousjobsofwhich$12,500wenttoJob100.Whatisthejournalentry?Work-in-ProcessControl62,000ManufacturingOverheadControl62,000Whatarethebalancesofthecontrolaccounts?TransactionsManufacturingOverheadWork-in-ProcessControlControl2.15,0006.62,0002.55,0003.5,0003.17,0005.45,1006.62,000Bal.3,100Bal.134,000TransactionsThecostofJob100is:Job1002.45,0003.14,0006.12,500Bal.71,500TransactionsJobscosting$104,000werecompletedandtransferredtofinishedgoods,includingJob100.Whateffectdoesthishaveonthecontrolaccounts?TransactionsWork-in-ProcessFinishedGoodsControlControl2.55,0007.104,0007.104,0003.17,0006.62,000Bal.30,000TransactionsWhatisthejournalentrytotransferJob100?FinishedGoodsControl71,500Work-in-ProcessControl71,500TransactionsJob100wassoldfor$104,800.Whatisthejournalentry?AccountsReceivableControl104,800Revenues104,800CostofGoodsSold71,500FinishedGoodsControl71,500TransactionsWhatisthebalanceintheFinishedGoodsControlaccount?$104,000––$71,500=$32,500Assumethatmarketingandadministrativesalarieswere$9,000and$10,000.Whatisthejournalentry?TransactionsMarketingandAdministrativeCosts19,000SalariesPayableControl19,000LearningObjective6Prorateend-of-periodunder-oroverallocatedindirectcostsusingalternativemethodsBudgetedIndirectCostsBudgetedindirect-costratescanbeassignedtoindividualjobsonanongoingandtimelybasis.However,budgetedratesarebasedonestimatesmadeupto12monthsbeforeactualcostsareincurred.Adjustmentsmayneedtomadebyyearend.End-Of-PeriodAdjustmentsUnderallocatedindirectcostsoccurwhentheallocatedamountofindirectcostsinanaccountingperiodislessthantheactualamountincurred.Overallocatedindirectcostsoccurwhentheallocatedamountofindirectcostsisgreaterthantheactualamountincurred.End-Of-PeriodAdjustmentsUnder-oroverallocatedindirectcosts=Indirectcostsincurred–IndirectcostsallocatedUnderapplied(oroverapplied)indirectcostsandunderabsorbed(oroverabsorbed)indirectcostsareequivalentterms.End-Of-PeriodAdjustmentsAssumethefollowingannualdataforD.L.Sports:ManufacturingOverheadControlBal.65,100ManufacturingOverheadAppliedBal.62,000End-Of-PeriodAdjustmentsHowwastheallocatedoverheaddetermined?2,480machinehours×$25budgetedrate=$62,000$65,100–$62,000=$3,100(underallocated)End-Of-PeriodAdjustmentsReasonsfortheunderallocatedamount:Numeratorreason(indirectcosts)Denominatorreason(quantityofallocationbase)End-Of-PeriodAdjustmentsActualmanufacturingoverheadcostsof$65,100aremorethanthebudgetedamountof$60,000.Actualmachineshoursof2,480aremorethanthebudgetedamountof2,400hours.End-Of-PeriodAdjustmentsApproachestodisposingunderallocatedoroverallocatedoverhead:AdjustedallocationrateapproachProrationapproachesImmediatewrite-offtoCostofGoodsSoldapproachAdjustedAllocationRateApproach...restatesallentriesinthegeneralandsubsidiaryledgersbyusingactualcostratesratherthanbudgetedcostrates.Actualindirect-costrateiscomputedattheendoftheyear.Everyjobtowhichindirectcostswereallocatedduringtheyearhasitsamountrecomputed.AdjustedAllocationRateApproachActualmanufacturingoverhead($65,100)exceedsmanufacturingoverheadallocated($62,000)by5%.3,100÷÷62,000=5%Actualmanufacturingoverheadrateis$26.25permachinehour($65,100÷2,480)ratherthanthebudgeted$25.00.AdjustedAllocationRateApproachD.L.Sportscouldincreasethemanufacturingoverheadallocatedtoeachjobby5%.ManufacturingoverheadallocatedtoJob100undernormalcostingis$12,500.$12,500×5%=$625$12,500+$625=$13,125whichequalsactualmanufacturingoverhead.ProrationApproachProrationisthespreadingofunder-oroverallocatedoverheadamongendingworkinprocess,finishedgoods,andcostofgoodssold.ProrationApproachBasistoprorateunder-oroverallocatedoverhead:Totalamountofmanufacturingoverheadallocated(beforeproration)EndingbalancesofWork-in-Process,FinishedGoods,andCostofGoodsSoldProrationApproach““A””Manufacturingoverheadcomponentofyear-endbalances(beforeproration):Work-in-Process$23,50038%FinishedGoods26,00042%CostofGoodsSold12,50020%Total$62,000 100%ProrationApproach““A””$3,100××38%=$1,178toWork-in-Process$3,100××42%=$1,302toFinishedGoods$3,100××20%=$620toCostofGoodsSoldProrationApproach““A””ManufacturingOverheadFinishedGoods65,10062,00032,5003,1001,302033,802CostofGoodsSoldWork-in-Process71,50030,0006201,17872,12031,178ProrationApproach““B””EndingbalanceofWork-in-Process,FinishedGoods,andCostofGoodsSoldWork-in-Process$30,00022%Finishe