Costi per commessa https://www.manager.it/default.asp?page=A_contabilita.html

1. Job-Order System Cost Flows
Let’s return to PearCo
and see what we will
do if actual and
applied overhead are
not equal.

2. PearCo’s actual overhead for the year was
$650,000 for a total of 170,000 direct labor
hours.
How much total overhead was applied to PearCo’s
jobs during the year? Use PearCo’s
predetermined overhead rate of $4.00 per direct
labor hour.
PearCo’s actual overhead for the year was
$650,000 for a total of 170,000 direct labor
hours.
How much total overhead was applied to PearCo’s
jobs during the year? Use PearCo’s
predetermined overhead rate of $4.00 per direct
labor hour.
Overhead Application
Example
SOLUTION
Applied Overhead = POHR × Actual Direct Labor Hours
Applied Overhead = $4.00 per DLH × 170,000 DLH = $680,000
PearCo has overapplied
overhead for the year
by $30,000. What will
PearCo do?

3. Work in
Process
Finished
Goods
Cost of
Goods Sold
$30,000
may be allocated
to these accounts.
Overapplied and Underapplied
Manufacturing Overhead
$30,000 may be
closed directly to
cost of goods sold.
Cost of
Goods Sold
PearCo’s Method
OR

4. Overapplied and Underapplied
Manufacturing Overhead
PearCo’s
Mfg. Overhead
Actual
overhead
costs
$650,000
$30,000
overapplied
PearCo’s Cost
of Goods Sold
Unadjusted
Balance
$30,000
$30,000
Adjusted
Balance
Overhead
Applied
to jobs
$680,000

5. Quick Check 
What effect will the overapplied overhead
have on PearCo’s cost of goods sold?
a. Cost of goods sold will increase.
b. Cost of goods sold will be unaffected.
c. Cost of goods sold will decrease.
What effect will the overapplied overhead
have on PearCo’s cost of goods sold?
a. Cost of goods sold will increase.
b. Cost of goods sold will be unaffected.
c. Cost of goods sold will decrease.

6. Quick Check 
What effect will the overapplied overhead
have on PearCo’s net operating income?
a. Net operating income will increase.
b. Net operating income will be unaffected.
c. Net operating income will decrease.
What effect will the overapplied overhead
have on PearCo’s net operating income?
a. Net operating income will increase.
b. Net operating income will be unaffected.
c. Net operating income will decrease.

7. Overapplied and Underapplied
Manufacturing Overhead - Summary
Alternative 1 Alternative 2
If Manufacturing Close to Cost
Overhead is . . . of Goods Sold Allocation
UNDERAPPLIED INCREASE INCREASE
Cost of Goods Sold Work in Process
(Applied OH is less Finished Goods
than actual OH) Cost of Goods Sold
OVERAPPLIED DECREASE DECREASE
Cost of Goods Sold Work in Process
(Applied OH is greater Finished Goods
than actual OH) Cost of Goods Sold
PearCo’s
Method

8. Tiger, Inc. had actual manufacturing overhead costs of
$1,210,000 and a predetermined overhead rate of
$4.00 per machine hour. Tiger, Inc. worked 290,000
machine hours during the period. Tiger’s
manufacturing overhead is
a. $50,000 overapplied.
b. $50,000 underapplied.
c. $60,000 overapplied.
d. $60,000 underapplied.
Tiger, Inc. had actual manufacturing overhead costs of
$1,210,000 and a predetermined overhead rate of
$4.00 per machine hour. Tiger, Inc. worked 290,000
machine hours during the period. Tiger’s
manufacturing overhead is
a. $50,000 overapplied.
b. $50,000 underapplied.
c. $60,000 overapplied.
d. $60,000 underapplied.
Quick Check 
Overhead Applied
$4.00 per hour × 290,000 hours
= $1,160,000
Underapplied Overhead
$1,210,000 - $1,160,000
= $50,000
Overhead Applied
$4.00 per hour × 290,000 hours
= $1,160,000
Underapplied Overhead
$1,210,000 - $1,160,000
= $50,000

9. Job-Order Costing – Typical
Accounting Entries
Let’s look at
summary journal
entries for a job-
order costing
system.

10. GENERAL JOURNAL Page 3
Date Description
Post.
Ref. Debit Credit
Raw Materials XXXXX
Accounts Payable XXXXX
Cost Flows – Material Purchases
Raw material purchases are recorded in an
inventory account.

11. GENERAL JOURNAL Page 3
Date Description
Post.
Ref. Debit Credit
Work in Process XXXXX
Manufacturing Overhead XXXXX
Raw Materials XXXXX
Cost Flows – Material Usage
Direct materials issued to a job increase Work in
Process and decrease Raw Materials. Indirect
materials used are charged to Manufacturing
Overhead and also decrease Raw Materials.

12. GENERAL JOURNAL Page 3
Date Description
Post.
Ref. Debit Credit
Work in Process XXXXX
Manufacturing Overhead XXXXX
Salaries and Wages Payable XXXXX
Cost Flows – Labor
The cost of direct labor incurred increases Work
in Process and the cost of indirect labor
increases Manufacturing Overhead.

13. GENERAL JOURNAL Page 3
Date Description
Post.
Ref. Debit Credit
Manufacturing Overhead XXXXX
Accounts Payable XXXXX
Property Taxes Payable XXXXX
Prepaid Insurance XXXXX
Accumulated Depreciation XXXXX
Cost Flows – Actual Overhead
In addition to indirect materials and indirect labor,
other manufacturing overhead costs are charged
to the Manufacturing Overhead account as they
are incurred.

14. GENERAL JOURNAL Page 3
Date Description
Post.
Ref. Debit Credit
Work in Process XXXXX
Manufacturing Overhead XXXXX
Cost Flows – Overhead Applied
Work in Process is increased when
Manufacturing Overhead is applied to jobs.

15. GENERAL JOURNAL Page 3
Date Description
Post.
Ref. Debit Credit
Salaries Expense XXXXX
Salaries and Wages Payable XXXXX
Advertising Expense XXXXX
Accounts Payable XXXXX
Cost Flows – Period Expenses
Nonmanufacturing costs (period expenses)
are charged to expense as they are incurred.

16. GENERAL JOURNAL Page 3
Date Description
Post.
Ref. Debit Credit
Finished Goods XXXXX
Work in Process XXXXX
Cost Flows – Cost of Goods
Manufactured
As jobs are completed, the Cost of Goods
Manufactured is transferred to Finished
Goods from Work in Process.

17. GENERAL JOURNAL Page 3
Date Description
Post.
Ref. Debit Credit
Accounts Receivable XXXXX
Sales XXXXX
Cost of Goods Sold XXXXX
Finished Goods XXXXX
Cost Flows – Sales
When finished goods are sold, two entries
are required: (1) to record the sale; & (2) to
record COGS and reduce Finished Goods.