CostandManagement

AccountingTheJobCosting:General

DescriptionTerminology:EnglishChineseCost

Accumulation成本積累Cost

Assignment成本分配Cost

Measurement成本計(jì)量Job

Costing分批法Process

Costing分步法Predetermined預(yù)先確定的Allocation

Base分配標(biāo)準(zhǔn)Overhead

Rate間接費(fèi)用分配率CostandManagement

Accounting1. CostAccumulationRecording and accumulating

themanufacturingcostsincurredRaw

materialsFactory

LaborManufacturing

Overhead2. Cost

MeasurementClassifyingandmeasuringthe

costsActualcostingNormal

costingCost

AssignmentAssigningtheaccumulatedcosts

tothework

done01CostAccumulation02CostMeasurement03CostAssignmentOverviewoftheJob

CostingCostandManagement

Accounting0102Manydifferentproductsare

producedeach

period.Productsaremanufacturedto

order.Theuniquenatureofeachorderrequirestracingorallocatingcoststoeachjob

andmaintainingcostrecordsforeach

job.OverviewoftheJob

CostingCostandManagement

AccountingMassesofidenticalorsimilarunitsofaproductorservice0102Example

companies:CommercialAircraftCorporationofChina(aircraft

manufacturer)TataConsultancyServices(InformationTechnology)HongKongAircraftEngineering(aircraftmaintenance)OverviewoftheJob

CostingCostandManagement

AccountingOverviewoftheJob

Costing習(xí)近平總書(shū)記指出：“要堅(jiān)持具體問(wèn)題具體分析，‘入山問(wèn)樵、入水問(wèn)漁’，一切以時(shí)間、地點(diǎn)、條件為轉(zhuǎn)移，善于進(jìn)行交換比較反復(fù)，善于把握工作的時(shí)度效。”GeneralSecretaryXiJinpingpointedout:“Wemustadheretothespecificanalysisofthespecific

issues.”CostandManagement

AccountingOverviewoftheJob

CostingJobcostingisaproductcostingsysteminwhichcostarecollectedandassignedtounitsofproductionforeachindividual

job.Inajobcostingfirm,collectingcostsbyjobprovidesvitalinformationformanagement.Onceajobiscompleted,theunitcostcanbeobtainedbydividingthetotalmanufacturingcostsbythenumberofunits

produced.- JobOrderCostingSystemisalsoextensivelyusedinservice

industries.CostandManagement

AccountingOverviewoftheJob

CostingDirect

MaterialDirect

LaborManufacturingOverheadJob

1Job

2Job

3Chargedirectmaterialanddirectlaborcoststoeachjobasworkisperformed.CostandManagement

AccountingOverviewoftheJob

CostingDirect

MaterialDirect

LaborManufacturingOverheadJob

1Job

2Job

3Manufacturingoverhead,includingindirectmaterialsandindirectlabor,areappliedtojobsby

usingpredeterminedoverhead

rate.CostandManagement

AccountingAccountingForManufacturing

OverheadIntheprocessofoverheadapplication,anallocationbase,suchasdirectlaborhours,directlabordollars,ormachinehours,isusedtoassignmanufacturingoverheadtoindividual

jobs.CostandManagement

AccountingWeuseanallocationbase

because:Itisimpossibleordifficulttotraceoverheadcoststoparticular

jobs.Manufacturing

overhead

consists

of

many

different

items

ranging

from

thegreaseusedinmachinestoproductionmanager’s

salary.Many

types

of

manufacturing

overhead

costs

are

fixed

even

though

outputfluctuatesduringthe

periodAccountingForManufacturing

OverheadThepredeterminedoverheadrate(POHR)usedtoapplyoverheadtojobsisdeterminedbeforetheperiod

begins.Usingapredeterminedratemakesitpossibletoestimatetotaljobcostssooner.Becauseactualoverheadfortheperiodisnotknownuntiltheendofthe

period.CostandManagement

AccountingAccountingForManufacturing

OverheadActualamountofallocationisbasedupontheactuallevelofactivity(normalcosting

system).Basedonestimates,anddeterminedbeforetheperiod

begins.CostandManagement

AccountingSeven-StepApproachtoJob

CostingStep

1Identifythechosencost

object.Step

2Identifythedirectcostsofthe

job.Step

3Selectthecost-allocationbasestouseforallocatingindirectcoststothe

job.Step

4Matchandcomputerindirectcoststotheirrespectivecost-allocation

base(s)Step

5Computeapredeterminedoverheadallocation

rateStep

6Allocateoverheadcoststothe

job.Step

7Computetotaljobcostsbyaddingalldirectandindirectcosts

together.CostandManagement

AccountingEXAMPLEAssumethatamanufacturingcompanyisplanningtosellabatchof25specialmachines(Job650)toaretailer

for$114,800.Seven-StepApproachtoJob

CostingStep

1:ThecostobjectisJob

650.Step2:Directcostsare:Directmaterials=$50,000Directmanufacturinglabor=

$19,000Step

3:Thecostallocationbaseismachine-hours.Job650used500machine-hours.2,480machine-hourswereusedbyalljobs.Step

4:Manufacturingoverheadcostswere

$65,100.Step

5:Actualindirectcostrateis$65,100÷

2,480=$26.25permachine-hour.Step

6:$26.25permachine-hour×500hours=

$13,125CostandManagement

AccountingSeven-StepApproachtoJob

CostingCostandManagement

AccountingStep

7Direct

material$50,000Direct

labor19,000Manufacturing

overhead13,125Total$82,125AdvantagesofJob

CostingCostandManagement

Accounting010203Needsagreatdealofclericalwork.Ascertainmentofoverheadrateneedsallocationandapportionmentoftheoverheadsfromservicedepartmenttoproductiondepartment

.Strictcontrolofcostsassociatedwithajobis

difficult.DisadvantagesofJob

CostingCostandManagement

AccountingQuick

Check1.Assumeafirmhasestimatedoverheadcostsforthecomingyearof$900,000andexpectedactivityis90,000directlaborhours.Whatisthepredeterminedoverheadrate?$10perdirectlabor

hour$15perdirectlabor

hour$8perdirectlabor

hour12perdirectlabor

hourCostandManagement

AccountingQuick

Check2.Whenamanufacturingcompanyhasahighlyautomatedplantproducingmanydifferentproducts,probablythemostappropriatebasisofapplyingfactoryoverheadcoststoWorkinProcess

is:units

processedmachinehoursdirectlabor

hoursdirectlabor

dollarsCostandManagement

AccountingQuick

Check3.Duringproduction,towhatarethecostsinjobordercostingapplied?manufacturing

overh