Job Order Costing
Job Order Costing
Job Order Costing
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Process Costing
1.Continues or mass production of homogeneous
products
2. Costs are collected and accumulated process - wise
or department - wise.
3. Process costs are calculated at the end of each
month.
4.Examples are Sugar, cement, chemicals, oil,
beverage, etc.
In this chapter we will discuss only job order costing system in detail
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2. Journal entries for labor cost for both direct and indirect labor
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When actual factory over head is recorded (Other than indirect material and indirect labor)
Factory overhead control
A/C payable or Cash
Accumulated depreciation
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Or, above (b) entry may be made alternatively, in case factory overhead applied account is
also maintained along with the factory overhead control account
Work in process Inventory .
Factory overhead applied
(To record applied Factory overhead)
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Journal entries when sale of above is recorded, if detail ( mark up) is given
Accounts Receivable or Cash
Sale
[To record sales]
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