NHÓM 5 42k18 1 JOBORDERCOSTING

Learn about “System Design: Job-Order Costing”
HOANG PHAT CO.,LTD
Instructors : Tran Dinh Khoi Nguyen
Subjects : Management Accounting

Member's name

1.
2.
3.
4.

Nguyen Thi Thanh Huong
Le Thi My Le
Le Thi Huong
Nguyen Huu Khanh


Content

Overview HOANG PHAT CO., LTD

1. Features and production process of the product
2. Cost estimation
JOB ORDER COSTING

3. Cost accounting and cost analysis


Overview HOANG PHAT CO., LTD
 HOANG PHAT CO., LTD is a Non-state enterprise.



Business activities: Producing and processing agricultural
and forest products - export.



Products: indoor and outdoor furniture; product pageinterior and wooden products.


JOB ORDER COSTING

1. Features and production process of the product

a)

Features of the product

•) Wood resources are plentiful and diverse species
•) High durability, aesthetics diversity, many models




High durability, aesthetics diversity, many models


JOB ORDER COSTING
b. Process manufacturing technology products
Round logs

Step 1

Sawing wood

Step 2

Scarfing

Step 3

Boiled

Step 4

Drying

Step 5

Step 6

Sawing


Step 7

Draw, drill, chisel

Assembly

Step 8

Sanding

Step 9

KCS1

Step 10

Oil dip

Step 11

KCS2

Step 12

packed and wrapped 

Step 13

Step 14

Finished products warehouse


JOB ORDER COSTING

2. Cost estimation

a) Cost estimate of raw materials directly
) The company estimates the cost of raw materials directly is expenditure
chemical and packaging.

the cost of wood materials, auxiliary materials,


JOB ORDER COSTING

2. Cost estimation

b) Cost estimate of direct labor cost
) Based

on the quantity of products produced according to the
estimates and norms of direct labor cost for a product.


JOB ORDER COSTING

2. Cost estimation

c)

Application manufacturing overhead

) The general production cost estimate includes the cost estimate:
Expenses for workshop staff, material costs, equipment costs,export, depreciation costs, costs of services purchased from outside, other costs

JOB ORDER COSTING

2. Cost Estimation

d)

Estimated cost of sales and management costs of the company

) Estimates

of selling expenses and management expenses of the Company are based on the previous period's data and the
fluctuation of the plan period. Then allocate to each order in the year according to the volume of production estimates.


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Employee Time Ticket


*The estimated level of activity depends on the business characteristics of each business karma to choose, may be the direct labor hours of workers, cost....

direct materials, direct labor costs.

* Application of manufacturing overhead

The predetermined overhead rate(POHR) used to apply overhead to jobs is determined before the period begins.

POHR= Estimated total manufacturing overhead cost for the coming period / Estimated total units in the allocation base for the coming period

*Example :

Hoang Phat CO., LTD. Required $300 of direct materials and 10 direct labor hours at $ 15 per hours. Estimated total overhead for the year was $800,000 and estimated direct labor hours were 25,000.
What would be recorded as the cost of job Hoang Phat CO., LTD?

POHR=$800,000/25,000=$32

Direct materials

$300

Direct labor $15x10 hours

$150

Manufacturing overhead $32x10 hours $ 320

Total cost

$770


JOB ORDER COSTING

3. Cost accounting and cost analysis



Company operating production and business according to the orders, so the Company applies the method of determining expenditures
work fee or the orders



The cost of production of the company is each order



Cost analysis object is the completed orders in accordance with the technical design