Production order and Job order costing

Job order costing

Costing for production order Job order costing cost accumulation method

‒ Accumulates the cost of resources used for manufacturing of products , per production order

‒ Ascertain the cost of manufactured products per production order

Production order costing ‒ Production order costing sheet offers detail analyzis of

production estimated and realized cost per rescources

‒ Production order Work In Progress reporting to general ledger allows

• Account maintenance for collecting production orders, documentation of nature of resources for easier reconciling and monitoring

• Preservation of production orders dimensional data in the account segment for business segment visibility in the ledger

Production order accountingSchematic of production order cost accounting

3

PRODUCTION ORDER

Pick ( 1)

Report as finished (

2 )

Raw material Inventory

Production Order Work In

Progress

Finished goodsInventory

Matl Cost ( 1) Matl. Cost (1)

Absorption

Realized cost ( 4)

FG Assumed cost( 4 )

Matl Indirect cost (1)

Matl Indirect cost(1)

FG. Assumed Cost (3 )

FG. Assumed Cost ( 3)

Mfg Cost (2 )Mfg. Cost (2 )

Mfg Indirect cost ( 2 )

Mfg Indirect cost (2 )

Productioncosting (

4 )

Adjustement Realized cost ( 4)

Operation 10 Operation 20

Operation 30

Operation N

Operation rescources

Time reporting (2 )

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