Job Costing Flashcards
How do you calculate the overhead rate?
Total estimated overheads/total estimated labour hours/labour costs/machine hours
How do you calculate the cost of the job?
Direct materials + Direct labour + Overheads
What amounts do you use when calculating the overhead rate?
Estimated amounts for the year
How do you calculate direct labour to put in the cost of the job?
Direct labour hours x $ paid per hour
How do you calculate the overhead applied to the job?
Estimated labour/machine hours for that job x rate
How do you calculate the selling price of a job?
Cost of job + Mark up + GST
What is the over or under applied amount?
The difference between the actual overhead and the estimated overhead
How do you calculate the actual overhead?
Indirect materials + indirect labour + general expenses/other overheads; ALL ACTUAL AMOUNTS
How do you calculate the applied overhead?
Estimated labour/machine hours x rate
Raw materials ledger
Bank or A/P DR
Work in progress CR
Overhead control CR
Work in progress ledger
Raw materials DR
Payroll control DR
Overhead control DR (estimated using rate)
Finished goods CR
Payroll control ledger
Work in progress CR
Overhead control CR
Overhead control ledger
Raw materials DR Payroll control DR Other overheads/general expenses DR Work in progress CR Cost of goods sold
Finished goods control ledger
Work in progress DR
Cost of goods sold CR
Cost of goods sold ledger
Finished goods DR
Overhead control DR
