ANALISIS

BIAYA
Semester Gasal TA 2013 2014
Lec 4 Job Order Costing

Objective

Mahasiswa dapat membuat kalkulasi biaya

menurut pesanan

Topics
Sistem Biaya pesanan yang departementalisasi dan
non departementalisasi

REVIEW OF MANUFACTURING
(PRODUCT) COSTS
Direct Materials
Direct Labor
Manufacturing Overhead

A SIMPLIFIED VIEW OF
PRODUCTION

REVIEW OF MANUFACTURING
INVENTORIES

Raw Materials
Work-in-Process
Finished Goods

PRODUCT COSTING PROCEDURES IN

ORGANIZATIONS
Process
Costing

Job-order
Costing

Distinct jobs or batches of units.

Costs accumulated separately by job.

PRODUCT COSTING PROCEDURES IN

ORGANIZATIONS
Process
Costing

Job-order
Costing

Typical job order cost applications:

Special-order printing
Building construction
Also used in service industry
Hospitals
Law firms

PRODUCT COSTING PROCEDURES

IN ORGANIZATIONS
Process
Costing

Job-order
Costing

Mass production in continuousflow processes.

Costs cannot be directly traced to
each unit of product.

PRODUCT COSTING PROCEDURES

IN ORGANIZATIONS
Process
Costing

Job-order
Costing

Typical process cost applications:

Petrochemical refinery
Paint manufacturer
Paper mill

JOB-ORDER COSTING VS PROCESS

COSTING
Process Costing

1.

2.

3.

Homogeneous
products
Costs accumulated by
process or department
Unit cost computed by
dividing process costs
of the period by the
units produced in the
period

Job-Order Costing

1.
2.
3.

Wide variety of
distinct products
Costs accumulated by
job
Unit cost computed
by dividing total job
costs by units
produced on that job

SEQUENCE OF EVENTS IN A JOBORDER COSTING SYSTEM

ACCUMULATING COSTS IN A JOB-ORDER

COSTING SYSTEM
Manufacturing
overhead (OH)
Applied to each
job using a
predetermined
rate

Direct
Direct
materials
materials

The
The Job
Job
Direct
Direct
labor
labor

ACCUMULATING COSTS IN A JOB-ORDER

COSTING SYSTEM

JOB-ORDER COST SHEET

The primary document for tracking the costs associated with a given job is the job-order cost sheet.

Lets investigate

JOB-ORDER COST SHEET

PearCo Job-Order Cost Sheet
Job Number A - 143
Department B3
Item Wooden cargo crate

Date Initiated 3-4-X7

Date Completed
Units Completed

Direct Materials
Direct Labor
Manufacturing Overhead
Req. No. Amount Ticket Hours Amount Hours
Rate
Amount

Cost Summary
Direct Materials
Direct Labor
Manufacturing Overhead
Total Cost
Unit Cost

Units Shipped
Date Number Balance

JOB-ORDER COST SHEET

PearCo Job-Order Cost Sheet
Job Number A - 143
Department B3
Item Wooden cargo crate

Date Initiated 3-4-X7

Date Completed
Units Completed

AAmaterials
requisition
materials
requisition
Direct Materials
Direct Labor
Manufacturing
Overhead
form
used
to
Req. No. Amount Ticket Hours Amount
Hours
form isis
usedRate
to Amount
authorize
authorize the
the use
use of
of
materials
materials on
on aa job.
job.

Cost Summary
Direct Materials
Direct Labor
Manufacturing Overhead
Total Cost
Unit Cost

Units Shipped
Date Number Balance

MATERIALS REQUISITION FORM

PearCo Materials Requisition Form

JOB-ORDER COST SHEET

PearCo Job-Order Cost Sheet
Job Number A - 143
Department B3
Item Wooden cargo crate

Date Initiated 3-4-X7

Date Completed
Units Completed

Direct Materials
Direct Labor
Manufacturing Overhead
Req. No. Amount Ticket Hours Amount Hours
Rate
Amount
X7-6890 $ 116

Cost Summary
Direct Materials
Direct Labor
Manufacturing Overhead
Total Cost
Unit Cost

116

Units Shipped
Date Number Balance

JOB-ORDER COST SHEET

PearCo Job-Order Cost Sheet
Job Number A - 143
Department B3
Item Wooden cargo crate

Date Initiated 3-4-X7

Date Completed
Direct
Direct labor
labor costs
costs
Units Completed

Direct Materials
Direct Labor
Req. No. Amount Ticket Hours Amount
X7-6890 $ 116

Cost Summary
Direct Materials
Direct Labor
Manufacturing Overhead
Total Cost
Unit Cost

116

are
are accumulated
accumulated
by
means
Manufacturing
byOverhead
means of
of aa
Hours
Rate record,
work
work Amount
record, such
such
as
as aa time
time card,
card,
for
for each
each
Units Shipped
employee.
employee.
Date

Number Balance

PearCo Employee Time Ticket

JOB-ORDER COST SHEET

PearCo Job-Order Cost Sheet
Job Number A - 143
Department B3
Item Wooden cargo crate

Date Initiated 3-4-X7

Date Completed
Units Completed

Direct Materials
Direct Labor
Manufacturing Overhead
Req. No. Amount Ticket Hours Amount Hours
Rate
Amount
X7-6890 $ 116
36
8
$
88

Cost Summary
Direct Materials
Direct Labor
Manufacturing Overhead
Total Cost
Unit Cost

$
$

116
88

Units Shipped
Date Number Balance

JOB-ORDER COST SHEET

Apply
Apply manufacturing
manufacturing overhead
overhead to
to jobs
jobs
using
aa predetermined
PearCo
Job Cost Sheet overhead
using
predetermined
overhead rate.
rate.
Job Number A - 143
Department B3
Item Wooden cargo crate

Date Initiated 3-4-X7

Date Completed 3-5-X7
Units Completed
2

Direct Materials
Direct Labor
Manufacturing Overhead
Req. No. Amount Ticket Hours Amount Hours
Rate
Amount
X7-6890 $ 116
36
8
$
88
8
$
4 $
32

Cost Summary
Direct Materials
Direct Labor
Manufacturing Overhead
Total Cost
Unit Cost

$
$
$
$
$

116
88
32
236
118

Units Shipped
Date Number Balance

JOB-ORDER COSTING DOCUMENT

FLOW SUMMARY

Lets summarize the document flow we

have been discussing in a job-order costing
system.

JOB-ORDER COSTING DOCUMENT

FLOW SUMMARY
Materials used
may be either
direct or
indirect.

Direct
materials

Job-Order
Cost Sheets

Materials
Requisition
Indirect
materials

Manufacturing
Overhead
Account

JOB-ORDER COSTING DOCUMENT

FLOW SUMMARY
An employees
time may be either
direct or indirect.

Direct
Labor

Job-Order
Cost Sheets

Employee Time
Ticket
Indirect
Labor

Manufacturing
Overhead
Account

JOB-ORDER COSTING DOCUMENT FLOW

SUMMARY
Employee
Time Ticket

Other
Actual OH
Charges

Materials
Requisition

Indirect
Labor

Manufacturing
Overhead
Account

Indirect
Materials

Applied
Job-Order
Overhead Cost Sheets

ALLOCATING OVERHEAD TO JOBS

The overhead allocation steps.
Define

the cost objects.

Accumulate indirect costs in cost pools.
Choose an allocation base.
Estimate an application rate.
Allocate indirect costs based on use of the
allocation base.

APPLICATION OF OVERHEAD

In general, overhead costs may be allocated

to jobs (products or processes) on the basis
of:
a

single plant-wide rate

departmental rates
activity rates the process known as activitybased costing (ABC)

The procedure is essentially the same.

APPLICATION OF OVERHEAD

At the beginning of each period, a

predetermined overhead rate (POHR) is
calculated for the entire plant, each
department, or each activity.
POHR = estimated total overhead costs /
estimated total activity (cost driver)
The

activity (cost driver) should be common to

all jobs and should result in an equitable
allocation.
The most widely used bases are DL hours, DL
cost, and machine hours.

APPLICATION OF OVERHEAD

Overhead applied to a job (or process)

= actual level of activity * predetermined rate
Overhead is applied whenever a job is
completed, and at the end of each period.

OVERHEAD APPLICATION EXAMPLE

Pear Co. applies overhead based on direct

labor hours. Total estimated overhead cost
for the year is $640,000. Total estimated
labor cost is $1,400,000, and total estimated
labor hours are 160,000.
What is Pear Co.s predetermined overhead
rate?
If job No. 101 took 50 labor hours to
complete, what is the overhead
applied/charged to job 101?

OVERHEAD APPLICATION EXAMPLE

POHR =

POHR =

Estimated total overhead cost

for the coming period
Estimated total activity (cost driver)
for the coming period
$640,000
160,000 direct labor hours (DLH)

POHR = $4.00 per DLH

For each direct labor hour worked on a job, $4.00
of factory overhead will be applied to the job.
Overhead for job 101 = 50 hours * $4.00 = $200

OVERHEAD APPLICATION EXAMPLE

Pear Co.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 Pearl
Co.s jobs during the year? Use Pear Co.s
predetermined overhead rate of $4.00 per direct
labor hour.
SOLUTION
Applied Overhead = POHR Actual Direct Labor Hours
Applied Overhead = $4.00 170,000 = $680,000

OVER- AND UNDERABSORBED

OVERHEAD
Overabsorbed
Overabsorbed overhead
overhead
Applie d
Ove rhe a d
Costs

>

Actua l
Ove rhe a d
Costs

Underabsorbed
Underabsorbed overhead
overhead
Applie d
Ove rhe a d
Costs

<

Actua l
Ove rhe a d
Costs

OVER- AND UNDERABSORBED

OVERHEAD
PearCos actual overhead for the year was
$650,000 and a total of 170,000 direct labor hours
were worked.
Using PearCos predetermined overhead rate of
$4.00 per direct labor hour, how much overhead
was applied to PearCos jobs during the year?

OVER- AND UNDERABSORBED

OVERHEAD
PearCos actual overhead for the year was $650,000 and
a total of 170,000 direct labor hours were worked.
Using PearCos predetermined overhead rate of
$4.00 per direct labor hour, how much overhead was
applied to PearCos jobs during the year?

SOLUTION
SOLUTION
Applied
Applied Overhead
Overhead == POHR
POHR Actual
Actual Direct
Direct Labor
Labor Hours
Hours
Applied
Applied Overhead
Overhead == $4.00
$4.00 per
per DLH
DLH 170,000
170,000 DLH
DLH == $680,000
$680,000

OVER- AND UNDERABSORBED

OVERHEAD
PearCos actual overhead for the year was $650,000 and
a total of 170,000 direct labor hours were worked.
Using PearCos predetermined overhead rate of
$4.00 per direct labor hour, how much overhead was
applied to PearCos jobs during the year?

PearCo has overabsorbed overhead for the

year by $30,000. What will PearCo do?
SOLUTION
SOLUTION
Applied
Applied Overhead
Overhead == POHR
POHR Actual
Actual Direct
Direct Labor
Labor Hours
Hours
Applied
Applied Overhead
Overhead == $4.00
$4.00 per
per DLH
DLH 170,000
170,000 DLH
DLH == $680,000
$680,000

ACCOUNTING FOR OVER- AND

UNDERABSORBED OVERHEAD
Three
Three basic
basic approaches
approaches

Prorate
Prorate among
among work-in-process,
work-in-process,

finished
finished goods,
goods, and
and cost
cost of
of goods
goods sold.
sold.

Adjust
Adjust cost
cost of
of goods
goods sold.
sold.

Recalculate
Recalculate the
the application
application rate
rate and
and
apply
apply to
to all
all the
the jobs
jobs during
during the
the period.
period.

Recalculation is costly and inefficient, but

may be required for cost reimbursement
contracts.

ACCOUNTING FOR OVER- AND

UNDERABSORBED OVERHEAD
PearCos Method
$30,000
may be allocated
to these accounts.

$30,000 may be
closed directly to
cost of goods sold.

OR
Work in
Process

Finished
Goods

Cost of
Goods Sold

Cost of
Goods Sold

ACCOUNTING FOR OVER- AND

UNDERABSORBED OVERHEAD
PearCos
Method
If Manufacturing
Overhead is . . .
UNDERABSORBED

Alternative 1
Close to Cost
of Goods Sold

Alternative 2

INCREASE
Cost of Goods Sold

INCREASE
Work-in-Process
Finished Goods
Cost of Goods Sold

DECREASE
Cost of Goods Sold

DECREASE
Work-in-Process
Finished Goods
Cost of Goods Sold

(Applied OH is less
than actual OH)
OVERABSORBED
(Applied OH is greater
than actual OH)

Allocation

ACCOUNTING FOR OVER- AND

UNDERABSORBED OVERHEAD
Tiger,
Tiger,Inc.
Inc. had
had actual
actual manufacturing
manufacturing overhead
overhead costs
costs of
of
$1,210,000
$1,210,000 and
and aa predetermined
predetermined overhead
overhead rate
rate of
of
$4.00
$4.00 per
per machine
machine hour.
hour. Tiger,
Tiger,Inc.
Inc. worked
worked 290,000
290,000
machine
machine hours
hours during
during the
the period.
period. Tigers
Tigers
manufacturing
manufacturing overhead
overhead isis
a.
a.
b.
b.

$50,000
$50,000 overabsorbed.
overabsorbed.
$50,000
$50,000 underabsorbed.
underabsorbed.

c.
c.
d.
d.

$60,000
$60,000 overabsorbed.
overabsorbed.
$60,000
$60,000 underabsorbed.
underabsorbed.

ACCOUNTING FOR OVER- AND

UNDERABSORBED OVERHEAD
Assume that Tigers overhead was $60,000
underabsorbed. This amount would result in
an adjustment that would decrease cost of
goods sold by $60,000.
a. True
b. False