EKMA4315 Akuntansi Biaya - Job Order Costing

Introduction

This tutorial provides a comprehensive guide to Job Order Costing, a crucial aspect of cost accounting, as presented in the video "EKMA4315 Akuntansi Biaya - Job Order Costing" by Universitas Terbuka TV. Understanding Job Order Costing is essential for managing costs effectively in manufacturing and service industries.

Step 1: Understand Job Order Costing

Job Order Costing is a method used to allocate costs to specific jobs or batches. It is particularly useful for companies that produce unique products or provide customized services. To grasp Job Order Costing:

• Recognize that costs are accumulated for each job.
• Identify the direct costs involved: materials, labor, and overhead.
• Differentiate between Job Order Costing and Process Costing, which is used for mass production.

Step 2: Gather Necessary Data

To implement Job Order Costing, collect the following information for each job:

• Direct Materials: Record all materials used specifically for the job.

• Direct Labor: Track the labor hours dedicated to the job and the associated costs.

• Manufacturing Overhead: Estimate overhead costs based on a predetermined rate, which can be calculated using:

  Predetermined Overhead Rate = Estimated Overhead Costs / Estimated Activity Level
  

Step 3: Assign Costs to Jobs

Once data is collected, assign costs to each job:

1. Calculate Total Direct Costs:

   • Sum up the costs of direct materials and direct labor.

2. Apply Overhead:

   • Multiply the predetermined overhead rate by the actual activity level (e.g., machine hours).

3. Total Job Cost:

   • Add direct costs and applied overhead to find the total cost for the job.

   Total Job Cost = Total Direct Costs + Applied Overhead
   

Step 4: Prepare Job Order Cost Sheet

Create a Job Order Cost Sheet to document all costs associated with each job. Include:

• Job number
• Description of the job
• Cost categories (materials, labor, overhead)
• Total cost

This sheet serves as a financial record and helps in analyzing the profitability of each job.

Step 5: Analyze Cost Data

After completing jobs, analyze the cost data to:

• Evaluate profitability by comparing the total job cost against sales revenue.
• Identify any trends or areas for cost reduction.
• Make informed pricing decisions for future jobs.

Step 6: Review and Adjust

Periodically review your Job Order Costing system to ensure its accuracy and efficiency. Adjust the predetermined overhead rate and cost allocation methods based on actual data and changes in production processes.

Conclusion

Understanding and implementing Job Order Costing is vital for effective cost management in businesses that produce custom products. By following these steps, you can accurately allocate costs, analyze job profitability, and enhance decision-making. As a next step, consider applying these principles to a specific project or job within your organization to gain practical experience.