JOB COSTING
JOB COSTING IS A PRECISE METHOD OF TRACKING ALL THE COSTS AND REVENUE
ASSOCIATED WITH A PARTICULAR PROJECT. PROJECTS MIGHT INCLUDE ONE OFF
CUSTOMER UNDERTAKINGS, MANUFACTURING NEW PRODUCTS OR DELIVERING MULTIPLE
PRODUCTS THAT WILL BE DEVELOPED AT THE SAME TIME.
JOB COSTS ARE TYPICALLY BROKEN DOWN INTO LABOR, MATERIALS AND OVERHEAD – THOUGH
EACH OF THESE ELEMENTS CAN BE BROKEN DOWN FURTHER. FOR INSTANCE, LABOR COSTS MIGHT
INCLUDE BOTH EMPLOYEE WAGES AND THIRD PARTY VENDOR FEES. MATERIAL COSTS CAN INCLUDE
BOTH DIRECT RAW MATERIALS THAT APPEAR IN A FINISHED PRODUCT AND THE INDIRECT MATERIALS
USED TO CREATE THE PRODUCT, LIKE EQUIPMENT. COMPANIES MUST CAREFULLY ACCOUNT FOR AND
PLAN AROUND EACH OF THESE ELEMENT TO DELIVER THEIR PROJECTS SUCCESSFULLY AND ON TIME.
,PRACTICAL QUESTION
1. COMPANY RECEIVED A JOB FROM ABC INFOTECH TO UPGRADE THEIR ALL COMPUTERS.
2. COMPANY APPOINTED MR. SAKETH TO UPGRADE THEIR ALL COMPUTERS.
3. THE COMPANY PURCHASED THE FOLLOWING ITEMS AND STORED AT RAJAM GODOWN.
REF. NO: PUR/SS/001 FROM SS TECHNOLOGIES.
A. RAM – 15PCS @ RS. 1050/-
B. CPU – 15PCS @ RS. 2250/-
C. MOTHER BOARD – 15 PCS @ 2550/-
D. MOUSE – 10 PCS @ RS. 70/-
E. KEYBOARD – 10 PCS @ RS. 250/-
4. MR. SAKETH TOOK ALL THE PARTS EACH 5PCS FROM RAJAM GODOWN FOR THE
UPGRADATION OF JOB.
5. COMPANY PAID LABOUR CHARGES RS 250/- , TRAVELLING CHARGES RS 1000/-, IN CASH
FOR THE JOB.
6. OUT OF ALL TAKEN PARTS, MR SAKETH USED 2PCS RAM, 1PCS KEYBOARD, 1PCS CPU, 2PCS
MOUSE, 2PCS MOTHERBOARD.
7. REMAINING ALL THE PARTS OF RETURN BY SAKETH TO RAJAM GODOWN.
8. COMPANY SEND A BILL WITH 40% OF PROFIT TO ABC INFOTECH WITH REF NO.
ABC/UPG/01.
9. COMPANY RECEIVED THE FULL AMOUNT FROM ABC INFOTECH BY CHEQUE OF ANDHRA
BANK.
10. COMPANY DEPOSITED CHEQUE ANDHRA BANK INTO SBI BANK.
, SOLUTION:
STEP 1: SETTING UP FEATURES
• 1. Press F11 Features Enable Cost Centres – Yes
• 2. Press F11 Features Enable Job Costing - Yes
JOB COSTING IS A PRECISE METHOD OF TRACKING ALL THE COSTS AND REVENUE
ASSOCIATED WITH A PARTICULAR PROJECT. PROJECTS MIGHT INCLUDE ONE OFF
CUSTOMER UNDERTAKINGS, MANUFACTURING NEW PRODUCTS OR DELIVERING MULTIPLE
PRODUCTS THAT WILL BE DEVELOPED AT THE SAME TIME.
JOB COSTS ARE TYPICALLY BROKEN DOWN INTO LABOR, MATERIALS AND OVERHEAD – THOUGH
EACH OF THESE ELEMENTS CAN BE BROKEN DOWN FURTHER. FOR INSTANCE, LABOR COSTS MIGHT
INCLUDE BOTH EMPLOYEE WAGES AND THIRD PARTY VENDOR FEES. MATERIAL COSTS CAN INCLUDE
BOTH DIRECT RAW MATERIALS THAT APPEAR IN A FINISHED PRODUCT AND THE INDIRECT MATERIALS
USED TO CREATE THE PRODUCT, LIKE EQUIPMENT. COMPANIES MUST CAREFULLY ACCOUNT FOR AND
PLAN AROUND EACH OF THESE ELEMENT TO DELIVER THEIR PROJECTS SUCCESSFULLY AND ON TIME.
,PRACTICAL QUESTION
1. COMPANY RECEIVED A JOB FROM ABC INFOTECH TO UPGRADE THEIR ALL COMPUTERS.
2. COMPANY APPOINTED MR. SAKETH TO UPGRADE THEIR ALL COMPUTERS.
3. THE COMPANY PURCHASED THE FOLLOWING ITEMS AND STORED AT RAJAM GODOWN.
REF. NO: PUR/SS/001 FROM SS TECHNOLOGIES.
A. RAM – 15PCS @ RS. 1050/-
B. CPU – 15PCS @ RS. 2250/-
C. MOTHER BOARD – 15 PCS @ 2550/-
D. MOUSE – 10 PCS @ RS. 70/-
E. KEYBOARD – 10 PCS @ RS. 250/-
4. MR. SAKETH TOOK ALL THE PARTS EACH 5PCS FROM RAJAM GODOWN FOR THE
UPGRADATION OF JOB.
5. COMPANY PAID LABOUR CHARGES RS 250/- , TRAVELLING CHARGES RS 1000/-, IN CASH
FOR THE JOB.
6. OUT OF ALL TAKEN PARTS, MR SAKETH USED 2PCS RAM, 1PCS KEYBOARD, 1PCS CPU, 2PCS
MOUSE, 2PCS MOTHERBOARD.
7. REMAINING ALL THE PARTS OF RETURN BY SAKETH TO RAJAM GODOWN.
8. COMPANY SEND A BILL WITH 40% OF PROFIT TO ABC INFOTECH WITH REF NO.
ABC/UPG/01.
9. COMPANY RECEIVED THE FULL AMOUNT FROM ABC INFOTECH BY CHEQUE OF ANDHRA
BANK.
10. COMPANY DEPOSITED CHEQUE ANDHRA BANK INTO SBI BANK.
, SOLUTION:
STEP 1: SETTING UP FEATURES
• 1. Press F11 Features Enable Cost Centres – Yes
• 2. Press F11 Features Enable Job Costing - Yes
