Job Order and Process Costing Updated-randee Latest

8/7/2019 Job Order and Process Costing Updated-randee Latest

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Job Order Costing & Process Costing

Pereja, Robert Marlon T.

Taguba, Ressie

Vega, Randee R.

Yap, Mark Gregory A.


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Topics for Discussion:

Costing Concepts

Job OrderCosting Concepts

Job Order Application

Process Costing Concepts

Process Costing Application


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THE COSTING CONCEPT


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What is the importance

of

COSTING?

THE COSTING CONCEPT


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Direct Materials

Direct Labor

Manufacturing Overhead


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Selling Costs

Administrative Costs


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Costing Concepts

3 Types of Costing


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What

is it?


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Units produced fully

absorb allmanufacturing costs

associated with the

product.


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JOB ORDER COSTINGCONCEPTS


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RESSIES

FLOWER

SHOP

We deliver.

Anywhere.

Everywhere!!!


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Job Order Costing Concepts

Bill of Materials

Production Order

Materials Requisition Form

Job Cost Sheet

Direct Materials Costs:


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Time Ticket

Direct Labor Costs:


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Allocation Base

Predetermined Overhead Rate

Normal Cost System

Computation of Unit Costs

Manufacturing Overhead Costs:


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Job Order Costing Flow


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Job Order Costing Report


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Job Order Costing Application

Ressies Flower

Shop

Accepts orders of flower arrangements

Lets follow 2 orders using Job Order costing

Job Order # 001

20 pcs bouquet for beauty pageant

Job Order # 002

25 pcs bouquet for wedding entourage


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Measuring Materials Cost


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Measuring Labor Cost


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Measuring Overhead Cost

How about Overhead?


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Applying Overhead Cost

Overhead

Cost includes

Indirect Labor

Indirect Materials

Fixed costs associated to production

Ressies Flower shop


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Predetermined Overhead Rate a rate used to charge overhead to jobs which is

identified at the beginning of the year

Using a predetermined rate makes it

possible to estimate total job costs sooner.Actual overhead for the period is not

known until the end of the period.

Estimated total manufacturingoverhead cost

Estimated total amount ofallocation base

POHR =


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Allocation Based

a measure such as Direct Labor or Machine

Hours that is used to assign overhead cost to

products and services

For Ressies Flower shop

Direct Labor: 240 hours estimate working hours

PHP25,000 / 240 hours = PHP104.17


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Overhead Cost

PHP25,000 / 240 hours = PHP104.17


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Job Cost Sheet


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Job Cost Sheet


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Job Cost Sheet

U d li d d O li d


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Underapplied and Overapplied

Overhead


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Application of Over/Under Applied OH


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PROCESS COSTING


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Process Costing: Definition

A costing system commonly used whenconverting raw materials into homogeneous

products.

Examples of products are: gas, oil, paper,

aluminum, flour, etc.

Assigns material, labor, and manufacturing

overhead costs to products to provide a

system for computing unit costs.


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Process vs. Job Order Costing

Process costing

system

Job-Order costing

system

Mass Produce

A product is indistinguishable from

other units of product

The identical nature of each unit of

product enables assigning the same

average cost per unit.

Specialized

manufactured to order.

The unique nature of each order

requires tracing or allocating costs to

each job, and maintaining cost

records for each job.


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Process Costing Flow

Still assign material, labor and mfg overheadcost

Cost traced to processing department


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Still assign material, labor and mfg overheadcost

Cost traced to processing department


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Process Costing Report

1

2

3

4


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Process Costing Application

Roberts Coffee

Background

Lets follow costing using two Process Costing

Methods

Weighted Average Method

FIFO

Roberts Coffee basic process

Procurement

of coffee

beans

Drying Milling Roasting Grinding Packing


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Equivalent Units


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ROUND 2: COST PEREQUIVALENT UNITS


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Cost Per Equivalent Unit


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ROUND 3: APPLYING COST


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Applying Cost


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ROUND 4: COSTRECONCILIATION


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Cost Reconciliation


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Process Costing Report


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It doesnt end there

Weve only just done 1 process

Procurement

of coffee

beans

Drying Milling Roasting Grinding Packing


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END!

Saw this flow online This the


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Saw this flow online. This the

costing flow.

Job Order and Process Costing Updated-randee Latest

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