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PPT 5 -1
Chapter Five
Job-Order Costing
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Learning Objectives
Describe the differences between job-
order costing and process costing, and identify the types of firms that would use each method.
Describe the cost flows and prepare the
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Direct materials Direct labor Overhead Total cost number of units Unit cost
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Work in Process
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Exercise 5-10
A. Materials costing $3,000 were purchased on account. Raw Materials Accounts Payable 3,000
3,000
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1,700
1,700
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Work in Process
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1,230
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Work in Process
(E)
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1,125
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Finished Goods
(F)
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1,275
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Finished Goods
(G)
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Direct Labor
70,000 15,000
Overhead is applied at 50 percent of DLC. Houses #1 and #2 are completed during the period House #1 is sold for $200,000 cash.
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Work in Process
(1) (2) (3) 220,000 150,000 (4) 187,500 75,000 (5) 205,000
Finished Goods
(4) 187,500 (5) 205,000 (6) 187,500
52,500
205,000
House #2
(1) 100,000 (2) 70,000 (3) 35,000
205,000
House #3
(1) 30,000 (2) 15,000 (3) 7,500 52,500
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Direct Materials
Req. No. Amount 24-A $500 46-B 650
Direct Labor
Overhead
Ticket # Hours Rate Amt. Hours Rate Amt. 49 40 $10 $400 40 $1.60 $64 71 30 8 240 30 3.00 90 $1,944 Total Costs_________ $19.44 Unit Cost _________
Cost Summary $1,150 Direct Materials_______ $640 Direct Labor _______ $154 Overhead _______
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F. Flintstone Name____________
1/24/01 Date_________
Amt. Job No. $60 16-C
Stop Time Total Time Rate 4:00 p.m. 6.0 hours $10
End of Chapter 5
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