Job costing and Batch costing

Presented by:
LATESH CHAUDHARI {827}
PINKY YADAV {851}
ABHISHEK ROY {802}
Job costing
Job Costing is the art of breaking down the specific
cost of a product or service that you provide. Fixed and
variable cost play the most important role in this
assessment

Fixed cost are overhead or cost that won't vary such as

light bill, insurance, mortgage or rent, etc. Variable
cost are fuel, oil, lumber, steel, etc.
Job costing
The change in these cost to make a certain product
and the cost of the job will change dramatically.

job costing also mean production against the

customer order.
Job Costing Example
David, Bryan, and Co. is a small furniture
manufacturing business in Texas.
They received an order for 10 chairs from a customer
in Kansas City.
Job Costing Example
Total cost for the job was $500.

How much was the cost per chair?

$500 ÷ 10 = $50/chair
Exhibit 1: Job Cost Sheet
Job No.
Customer name________________________ Date started __________________
and address ________________________ Date promised __________________
Description ________________________ Date finished __________________
Quantity ________________________ Special remarks, if any __________________

Materials Labour Overheads

Quantity Rate Amount Hours Rate Amount Hours Rate Amount

Department 1
Department 2
Department 3
Cost Summary
Materials Laobur Overheads Total
Actual Estimate
Department 1
Department 2
Department 3
Job order price
Profit (Loss)
Discrepancies between actual and estimated costs are explained below:
1.
2.
3.
Batch costing
Batch costing means the cost of a product in which
various rawmaterial is being used as input along with
the labour involved & the electricity consumed in a
batch
Batch Costing Example
Laura Foods produces a garlic flavored tomato sauce.
Production of the sauce requires two major processes:

Chopping Mixing and Canning

Batch Costing Example
Assume that Laura incurred $20,000 in the Mixing
and Canning process to mix 100,000 pints of tomato
sauce.
What is the Mixing and Canning cost per pint?

$20,000 ÷ 100,000 = $0.20/pint

Difference between Job & Batch costing