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    Job Costing

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    bellado
    This document discusses various methods of job costing, including job order costing, contract costing, batch costing, process costing, operation costing, single/unit costing, service costing, and composite costing. It provides details on single/unit costing, job costing, and batch costing. It also outlines the seven steps of job costing and includes cost flowcharts and examples of cost sheets and income statements used for job costing.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Job Costing

    Uploaded by

    bellado
    1K views11 pages
    This document discusses various methods of job costing, including job order costing, contract costing, batch costing, process costing, operation costing, single/unit costing, service costing, and composite costing. It provides details on single/unit costing, job costing, and batch costing. It also outlines the seven steps of job costing and includes cost flowcharts and examples of cost sheets and income statements used for job costing.

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    This document discusses various methods of job costing, including job order costing, contract costing, batch costing, process costing, operation costing, single/unit costing, service costing, and composite costing. It provides details on single/unit costing, job costing, and batch costing. It also outlines the seven steps of job costing and includes cost flowcharts and examples of cost sheets and income statements used for job costing.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views11 pages

    Job Costing

    Uploaded by

    bellado
    This document discusses various methods of job costing, including job order costing, contract costing, batch costing, process costing, operation costing, single/unit costing, service costing, and composite costing. It provides details on single/unit costing, job costing, and batch costing. It also outlines the seven steps of job costing and includes cost flowcharts and examples of cost sheets and income statements used for job costing.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    JOB COSTING

    METHODS OF COSTING
    Job order costing
    Contract costing or terminal
    costing
    Batch costing
    Process costing
    Operation costing
    Single or unit costing
    Service costing
    Composite costing
    Single or unit costing
    It is applied where the organisations produce single
    product and the whole production involve in
    manufacture of single product.
    In unit costing, cost is collected elementwise like
    Direct Materials, Direct Labour, Prime cost, Factory
    Overhead, Administration Overhead, Selling and
    Distribution Overhead etc.
    Cost per Unit =
    Total cost for the period
    Number of Units produced during the Period
    Job Costing & Batch Costing
    Job costing: A Job is a specific order for work usually
    carried out within a factory or workshop and moves
    through activities and operations as a continuously
    identifiable unit. For ex-
    Engineering jobs, Printing jobs, ship building,
    Furniture making etc
    Batch costing: The batch costing is used when a
    quantity of similar and identical products are
    manufactured together as one Job. The batch costing
    is used in Printing, Packaging, Automobile and
    engineering components, Textiles etc
    Cost Flowchart

    5
    Seven-step Job Costing

    1. Identify the Job to be costed


    2. Identify the Direct Costs of the Job
    3. Select the Cost-Allocation base(s) to
    use for allocating Indirect Costs to the
    Job
    4. Match Indirect Costs to their
    respective Cost-Allocation base(s)
    Seven-step Job Costing (continued)
    5. Calculate an Overhead Allocation
    Rate:
    • Actual OH Costs ÷ Actual OH Allocation
    Base

    7. Allocate Overhead Costs to the Job:


    • OH Allocation Rate x Actual Base Activity For the Job

    9. Compute Total Job Costs by adding all


    direct and indirect costs together
    Job Costing Overview
    Cost Sheet for the year ended….
    Cost of Goods Manufactured

    Calculates the cost


    of Direct Materials
    Used
    Accumulates the
    three product
    costs for the
    current period
    Adjusts the
    current period
    manufacturing
    costs to account
    for units actually
    completed

    10
    Income Statement

    Figure carries
    forward from
    the Schedule
    of Cost of
    Goods
    Manufactured
    Period Costs
    are expensed
    as incurred

    11

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