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 applied overhead 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.