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Business LibreTexts

2.1: Chapter 2 Study Plan

  • Page ID
    10582
  • Study Plan: Job Costing

    Knowledge Targets

    I can define the following terms as they relate to our unit:

    Applied Overhead Goods (or work)  in process
    Finished Goods Job Costing
    Allocation Base Cost driver Cost of goods sold
    Under-applied Overhead
    Predetermined overhead rate Cost of Goods Sold Cost of Goods Manufactured
    Over-applied Overhead
    Gross Margin (or Profit) Direct materials Direct Labor Actual Overhead

     

    Reasoning Targets

    • I can identify job costs as direct materials, direct labor and overhead.
    • I can track job costs from raw materials to goods in process to finished goods and cost of goods sold.
    • I can identify accounts to use in recording the flow of job costs.
    • I can identify the allocation base used in calculating predetermined overhead rate.
    • I can identify the difference between actual overhead and applied overhead.
    • I can determine under- or over-applied overhead.
    • I can understand a manufacturing statement with cost of goods manufactured calculated.

    Skill Targets

    • I can prepare and post journal entries for job costing from raw materials to cost of goods sold.
    • I can calculate the predetermined overhead rate for a company.
    • I can calculate the amount of appliedoverhead using the predetermined overhead rate.
    • I can calculate the amount of under- or over-applied overhead using applied overhead and actual overhead.
    • I can compute the total cost of a job and determine the job’s gross margin.
    • I can prepare a manufacturing statement, schedule of cost of goods sold, and income statement for job costing.

    Click Job Cost Study Plan for a printable copy.