page 5: job costing system gerald katherine armineh
TRANSCRIPT
Page 5: Job Costing System
Gerald
Katherine
Armineh
Document or Report
• May be prepared by hand or printed by a computer
Off-Page Connector
• An entry from another page
OR
• An exit to another page
Display
• Information displayed by an online output device
• Ex: Monitor
Magnetic Disk
• Used for master files and databases
• Shows data stored permanently on a magnetic disk
Online Keying
• Shows data entry by an online device
• Ex: Personal Computer
Computer Processing
• Shows a computer-performed processing function
• Usually results in a change in data or information
Auxiliary Operation
• A processing function performed by a device that is not a computer
Job-Order Costing
• The process of tracking the expenses incurred on a job against the budget or estimate for that job
• Both direct and indirect costs are assigned to each open job
• The advantages of tracking such data is that it allows companies to build up a profile of projects undertaken, and improve their estimation report involved when similar projects are taken
Time Card or Labor Ticket
Materials requisition
Data entry and
verification
Data entry and
verification
Production labor
transaction file
Materials issuance
transaction file
Merge
To Payroll
Time Card or Labor
Ticket
• Used for employees paid on an hourly basis
• Records the employee’s arrival and departure time for each work shift
• Includes total hours worked during a pay period
Time Card or Labor Ticket
Materials requisition
Data entry and
verification
Data entry and
verification
Production labor
transaction file
Materials issuance
transaction file
Merge
To Payroll
Materials requisition
Authorizes the removal of the necessary quantity of raw materials from the storeroom to the factory location
Contains:1. Production order number
2. Date of issue
3. Part numbers and quantities of all necessary raw materials
Time Card or Labor Ticket
Materials requisition
Data entry and
verification
Data entry and
verification
Production labor
transaction file
Materials issuance
transaction file
Merge
To Payroll
Contains records for production labor during this period
Production labor
transaction file
Time Card or Labor Ticket
Materials requisition
Data entry and
verification
Data entry and
verification
Production labor
transaction file
Materials issuance
transaction file
Merge
To Payroll
Contains records for raw materials used during this period
Materials issuance
transaction file
Merge
Production cost
transaction file
(Actual)
Materials and labor usage
report
Scrap and lost time report
Production cost
transaction file
(Actual)
• Contains records for the total production costs during this period
• Includes costs for both labor and materials
Merge
Production cost
transaction file
(Actual)
Materials and labor usage
report
Scrap and lost time report
• Report showing the amount of labor and materials that were used
Materials and labor usage
report
Merge
Production cost
transaction file
(Actual)
Materials and labor usage
report
Scrap and lost time report
• Report showing the amount of labor and materials that were lost or wasted
Scrap and lost time
report
Production cost
transaction file
(Actual)
Standard cost file
(Budgeted)
Standard cost variance analysis
Overhead analysis
Standard cost variance reports
Overhead residual
analysis report
Manufacturing Overhead file
(Actual)
Standard cost file
(Budgeted)
• Standard cost per unit for each variable
direct-cost input =
Standard input allowed for one output unit x Standard price per
input unit
• The costs which are budgeted prior to the production of any units the company will sell
• Covers budgeted direct materials, direct manufacturing labor, indirect costs, and manufacturing overhead
Production cost
transaction file
(Actual)
Standard cost file
(Budgeted)
Overhead analysis
Standard cost variance reports
Overhead residual
analysis report
Manufacturing Overhead file
(Actual)
Standard cost variance analysis
• Compares the budgeted direct-costs of production against the actual direct-costs of production as well as
indirect costs• Two types of Variance:
– Price Variance– Efficiency Variance
• Price Variance= (Actual Price of input-Budgeted) x Actual Quantity of Input
• Efficiency Variance=(Actual Quantity of input used- Budgeted)x Budgeted Price of input
2 Types of Variance:
Production cost
transaction file
(Actual)
Standard cost file
(Budgeted)
Standard cost variance analysis
Overhead analysis
Standard cost variance reports
Overhead residual
analysis report
Manufacturing Overhead file
(Actual)
Overhead analysis
• Compares actual overhead to what has
been budgeted• It helps to find the
variance between budgeted overhead and actual overhead
to help determine whether this is un/favorable
Productioncost
transaction file(Actual)
Costdistribution
ManufacturingOverhead file
(Actual)
Direct Materialfile
(Actual)
Direct Laborfile
(Actual)
•Pulls the data stored in the production cost transaction file, and separately allocates the direct materials, direct labor, and indirect costs.
• The indirect costs include both indirect materials and indirect labor, which are stored in the manufacturing overhead file.
• The direct material and direct labor costs are stored individually.
Cost Distribution
Production cost
transaction file
(Actual)
Direct Material File
(Actual)
Direct Labor File(Actual)
Manufacturing Overhead File
(Actual)
ManufacturingOverhead file
(Actual)
Direct Materialfile
(Actual)
Direct Laborfile
(Actual)
Overheadapplication
Open Jobfile
(WIP)
Job statusquery
PrintJob status
report
Pulls the stored data from the manufacturing
overhead, direct material and direct labor files and applies the data to the
open job file.Cost
allocation
ManufacturingOverhead file
(Actual)
Direct Materialfile
(Actual)
Direct Laborfile
(Actual)
Overheadapplication
Open Jobfile
(WIP)
Job statusquery
PrintJob status
report
Any job that is partially completed (also called
work in process).
Open Job File
(WIP)
ManufacturingOverhead file
(Actual)
Direct Materialfile
(Actual)
Direct Laborfile
(Actual)
Overheadapplication
Open Jobfile
(WIP)
Job statusquery
PrintJob status
report
When the open job file is updated, the system
displays the job status query to the monitor.
Job Status Query
ManufacturingOverhead file
(Actual)
Direct Materialfile
(Actual)
Direct Laborfile
(Actual)
Overheadapplication
Open Jobfile
(WIP)
Job statusquery
PrintJob status
report
With a print command, the job status report is
generated and printed.
Job status report
Time Card or Labor Ticket
Materials requisition
Data entry and
verification
Data entry and
verification
Production labor
transaction file
Materials issuance
transaction file
Merge
To Payroll
Threat
• Inaccurate Time Data– Increase labor expenses– Result in erroneous labor expense
reports
Time Card or Labor Ticket
Control
-Badge readers
-Bar code scanners
-Data entry program including:- Field checks- Limit checks- Validity checks
Time Card or Labor Ticket
Materials requisition
Data entry and
verification
Data entry and
verification
Production labor
transaction file
Materials issuance
transaction file
Merge
To Payroll
Threat
• Undocumented Lost Materials– Inflated inventory
Materials requisition
Control
-Badge readers
-Bar code scanners
Time Card or Labor Ticket
Materials requisition
Data entry and
verification
Data entry and
verification
Production labor
transaction file
Materials issuance
transaction file
Merge
To Payroll
Edit Checks
Control
Data entry and
verification