Chapter 06:

Job Cost

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Job CostChapter 6 shows you how to use Peachtree’s

Job Cost System. Peachtree lets you assign

Job ID codes to purchases, sales, and

employee hours. This way, you can track how

each of these factors impacts costs for a

specific job.

Purchases Sales

Hours Worked

JOBS

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Peachtree Tip

Jobs can be assigned to purchases of inventory,

sales to customers, and payroll.

The diagram below shows how Peachtree

organizes job costing. (Refer to textbook p. 208.)

1) Setup 2) Tasks 3) Reporting

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Backing Up Chapter 6

Backup Name

Excel Report KB Page Nos.

Chapter 6.ptb 3,661 KB 218

Exercise 6-2.ptb 3,680 KB 220

Exercise 6-2_Job Profitability

Report.xlsx

16 KB 221

Exercise 6-2_Job Profitability

Report.pdf

14 KB 221

In Chapter 6, you make two backups, save one Excel file, and save

one PDF file. The Exercise 6-2.ptb backup file is used for work in

Part 4, Chapters 16-18. Do not delete the Exercise 6-2.ptb file.

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Job Costing and Purchasing, pp. 211-213

When purchasing inventory items for jobs, the Purchases/Receive Inventory

window is used. Refer to pages 212-213.

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Job Costing and Sales, pp. 213-215 The Sales/Invoicing window is used to record inventory sold and to select the

appropriate job. The completed Sales/Invoicing window is shown on p. 215.

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Chapter 6:

Glossary of Terms

6-7

Job Costing, p. 207Peachtree’s job costing feature allows you to track the costs incurred while

performing a job. To use job costing, identify the project for which you want

to track expenses and income and then determine how much detail is

needed. For Job Cost and Payroll, refer to pages 215-217.

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Going to the Net, p. 219Access the Sage website at www.sage.com. Link to Sage Worldwide. Choose your location; for example, link to USA. The URL is http://www.sage.com/ourbusiness/sageworldwide.

In North America, how many small and medium sized

businesses does Sage Software provide business

management software to?

List Sage Software’s brands.

Select the Our Business tab. Read the About Us information.

Link to Our Products and Services. The URL is

www.sage.com/ourbusiness/aboutus/ourproductsservices.

How does Sage classify its products?

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Analysis Question, p. 221Explain the interrelationships of jobs, purchases, sales

and payroll.

In Peachtree, you can assign Job ID codes to

purchases, sales, and employee hours. In this way,

Peachtree tracks how each of these factors impacts job

costs. The diagram on textbook page 207 illustrates how

jobs work with purchases, sales, and payroll.

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Assessment Rubric, pp., 221-222

Date Transaction

Navigation

Center/Module

Task

Window

Journal

Dr./Cr.

3/26/12 Sold two Bel-Grow Impulse

Sprinklers (EQWT-15160)

to Franklin Botanical

Gardens, $64.18 (includes

sales tax); terms 2% 10,

Net 30 days; Job ID

Franklin Botanical Gardens.

Customers & Sales;

New Sales Invoice

Accounts Receivable

Sales/Invoicing

window

Sales Journal

Dr. 11000 Accounts

Receivable/Franklin

Botanical Gardens,

$64.18

Dr. 50000-EQ

Product Cost-

Equipment, $23.90

Cr. 231000 Sales

Tax Payable, $4.20

Cr. 40000-EQ

Sales-Equipment,

$59.98

Cr. 12000 Inventory,

$23.90

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Assessment Rubric (continued),

pp., 221-222

Date Transaction

Navigation

Center/Module

Task

Window

Journal

Dr./Cr.

3/26/12 Invoice No. ARM967 was

received from Armstrong's

Landscaping for the

purchase of special wood

treatment, $85; terms 2%

10, Net 30 Days. Apply this

purchase to the Franklin

Botanical Gardens jobs.

Vendors & Purchases,

Enter Bills, New Bill

Accounts Payable

Purchases/Re

ceive

Inventory

window

Purchases Journal

Dr. 57200 Materials

Cost, $85

Cr. 20000 Accounts

Payable/Armstrong's

Landscaping, $85

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Assessment Rubric (concluded),

pp., 221-222

Date Transaction

Navigation

Center/Module

Task

Window

Journal

Dr./Cr.

3/29/12 Amanda W. Chester

worked one hour on the

Franklin Botanical Gardens

job. Apply her paycheck to

this job.

Employees & Payroll; Pay

Employees, Enter Payroll

for one employee

Payroll

Payroll Entry

window and

Labor

Distribution to

Jobs window

Payroll Journal

Dr. 77500 Wages

Expense, $1,120

Dr. 72000, Payroll

Tax Expense,

129.14

Cr. 23400 Federal

Payroll Taxes,

$325.91

Cr. 23600 State

Payroll Taxes

Payable, $45.67

Cr. 23300 401 K

Deductions Payable,

$44.80

Cr. 10300 Payroll

Checking Account,

$832.76

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Online Learning Center Go online to www.mhhe.com/yacht2012 for additional

resources. Link to Student Edition, select Chapter 6.

o Interactive Testing

o Glossary of Terms

o PowerPoints

o Assessment Rubrics

o Going to the Net

o QA Templates

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