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 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 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 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 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) Print 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) Print 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) Print 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

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)

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

Any job that is partially completed (also called work in process). Open Job File (WIP)

When the open job file is updated, the system displays the job status query to the monitor. Job Status Query

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 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 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 Production labor transaction file Materials issuance transaction file Merge To Payroll Edit Checks Control Data entry and verification