This document provides an overview of job order costing concepts and journal entries. It discusses how to record direct materials, direct labor, manufacturing overhead, and non-manufacturing expenses. It also covers calculating and applying overhead rates, recording work in process and finished goods inventory, and journal entries for job completion and sales. Examples are provided for each step to illustrate the full job order costing process.

1. All right reserved® EXAM SET JOB ORDER COSTING Author: AHMADROSLAN

2. WHAT SHOULD YOU KNOW ? Job order costing is used in firms that produce unique products or services Direct materials, Direct Labor, MOH(indirect), Nonmanufacturing expense How to determine Under/Overapplied MOH How to calculate Predetermined Overhead Rate How to record Journal entries for Job Order Costing How to record in ledger

3. Recording Direct and Indirect costs 1.E.g Purchased materials on account for RM30,000 Issued materials to production totaling Rm25,000 80% which was easily traced to specific jobs( Direct materials) and the rest treated as Indirect materials How to solve this Q?

4. Here you are!! First, record to the ledger Second, record to journal Recording to ledger Journal Entries 1.Raw materials Inventory Ac.Payable 30,000 Issued** DM 20000 IDM 5,000 ** 25,000X80%=20,000 utk DM 25,000X20%=5000 utk I.DM

5. Recording Ledger Direct material- W.I.P inventory Indirect material-MOH 1.Work in process inventory 1.Manufacturing overhead Direct material 20,000 indirect material 5,000

6. Journal entries Using X-system 1.Work in process inventory Direct material 20,000 1.Raw materials Inventory Issued** DM 20000 IDM 5,000 1.Manufacturing overhead indirect material 5,000

7. Recording Direct labor and Indirect labor E.g Payroll costs totaling RM20,000 were recorded as follows: RM 10,000 paid for assembly workers- Direct labor RM3000 paid for Factory supervision- Indirect labor RM5000 paid for administrative personnel- nonmanufacturing RM2000 paid for sales commission-Nonmanufacturing P/S: Yang nikorangkenebezakan yang manadirect,indirect, nonmanufacturing expenses How to solve this Q?

8. Here you are!! First, record to the ledger Second, record to journal Recording Ledger 1.Direct labor Wages payable 10000 Work in process inventory 1.Indirect labor Direct labor 10,000 Wages payable 3000 Manufacturing overhead Indirect labor 3000

9. Journal entries Using X-system Work in process inventory Direct labor 10,000 Direct labor Wages payable 10000 Manufacturing overhead Indirect labor 3000 Indirect labor Wages payable 3000

10. RM5000 paid for administrative personnel- nonmanufacturing RM2000 paid for sales commission-Nonmanufacturing Recording Ledger Journal Entries Nonmanufacturing Expenses Administrative personnel 5000 Sales commission 2,000

11. Recording MOH and NonMOH expenses E.g Recorded deprection: RM5000 for machines- MOH Rm2000 for office copier-NonMOH How to solve this Q? Recording Ledger Manufacturing overhead Depreciation 5000 Accumulated deprecition Deprecition for machines 5000 Deprecition for office copier 2000 Nonmanufacturing expenses Depreciation 2000

12. Journal entries Manufacturing overhead Depreciation 5000 Accumulated deprecition Deprecition for machines 5000 Deprecition for office copier 2000 Nonmanufacturing expenses Depreciation 2000

13. E.g paid RM5000 in other factory costs in cash How to solve this Q? Recording Ledger Manufacturing overhead Cash Other factory costs 5000 Other factory costs 5000

14. Journal entries Using x-system Manufacturing overhead Cash Other factory costs 5000 Other factory costs 5000

15. **Recording Applied Manufacturing overhead Two ways to calculate Applied MOH 1. Using Predetermined overhead rates formula 2. follow the Q instruction E.g Applied MOH at a rate of 200% of direct labor cost- 2 How to solve this Q? First, understand the instruction Applied MOH bolehdikiradgndarabkan 200% dgn Direct labor cost Direct Labor cost? = RM 10,000 paid for assembly workers- Direct labor Then, 10000X200%= 20,000- APPLIED MOH What’s next?

16. First, korangkenatahubeza applied and actual MOH Manufacturing overhead APPLIED ACTUAL Ingat, Belah DT ACTUAL Belah CR APPLIED Then, yang korangkiratadi applied MOH tu, masukkan la belah CR

17. Recording MOH, and find over/under appliedMOH Underapplied= Actual > Applied Overapplied= Applied> Actual In this case, Applied is greater than actual. Applied=20000, Actual=18,000 Manufacturing overhead APPLIED ACTUAL Indirect materials 5000 Indirect labor 3000 Depreciation 5000 Other factory 5000 AppliedManufacturing overhead 20,000 2,000 Overapplied MOH 20000 20000

18. Recording Work in process inventory Untukcarijumlah finished goods Fininshed goods yang sempurnamestiadatiga element Direct matrials,direct labor, Applied MOH Contohsemua job dahsiap Tapi, kalauada yang x siapmcmmanapulak? Jom I tunjukcontohkluada job yang xsiap Manufacturing overhead Direct matrials 20,000 Direct labor 10,000 Applied MOH 20,000 Finished goods 50,000 50,000 50,000

19. Kalau job ada yang x siap E.g Completed all jobs but one(semuadahsiaptapiadasatu yang xsiaplagi: the job cost sheet for this job shows RM2,000 for direct materials, RM3,000 for direct labor, and RM5000 for apllied MOH Tambahkansemuadulu DM+DL+MOH yang xsiapni, 2000+3000+5000= 10,000 Maksudnyadisini, 10000 niakanjadi balance C/D coz dixsiaplg Work in process inventory Akan transfer ke finished goods account Direct matrials 20,000 Direct labor 10,000 Applied MOH 20,000 Finished goods 40,000 Balance b/d 10,000 50,000-10,00=40,000 50,000 50,000 Balance c/d(Job ygxsiaplg) 10,000

20. Finished goods inventory account Work in process inventory : Direct matrials 20,000 Direct labor 10,000 Applied MOH 20,000 Finished goods 40,000 Balance b/d 10,000 50,000 50,000 Balance c/d(Job ygxsiaplg) 10,000 Assume beginning finished goods=15000 Finished goods inventory Balance b/d 15,000 Cost of goods Manufactured 40,000

21. Journal entry

22. When job is sold Final step, bila job nakdijual E.g Sold job costing RM50000(harga cost); Ahmadfinance uses cost-plus pricing with markput of 20% Finished goods inventory When job is sold 50,000 Balance b/d 15,000 Cost of goods Manufactured 40,000 Balance c/d 5000 55,0000 55,000 Balance b/d 5000 Cost of goods sold 50,000

23. Journal entry Using x-system

24. Recording sales revenue Ahmadfinance uses cost-plus pricing with markup of 20% Cost=50,000 Markup price= 50,000X20%= 10,000 Sales price:- 50,000+10,000=60000 Recoding ledger Sales revenue Account receivable 50,000

25. Journal entry

26. Over/underappliedManufaturing Underapplied:- Tambahdengan COGS Overapplied:- Total dengan COGS E.goverapplied RM2000 Manufacturing overhead overapplied 2000 Cost of goods sold Overapplied 2000 50,000 Balance c/d 48,000 50,000 50,000 Balance b/d 48,000

27. AHMAD ROSLAN, TQ FOR USING MY WORK Whateva you do,do well, and you may success attend your efforts