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Assignment Pertemuan 4-Kode Dosen
Assignment Pertemuan 4-Kode Dosen
Class : AK-47-07
NIM : 104022330047
PART I
Please answer each question:
1. Define cost pool, cost tracing, cost allocation, and cost-allocation base.
a. Cost Pool
A cost pool is a grouping of individual indirect cost items. It is a collection of
indirect costs that are incurred for the benefit of multiple cost objects, such as
departments products, or services.
b. Cost Tracing
Cost tracing is the process of assigning direct costs to the relevant cost objects.
Direct costs are costs that can be directly attributed to a specific cost object,
such as direct labor or direct materials
c. Cost Allocation
Cost allocation is the assigning of indirect costs to the chosen cost object.
Indirect costs are costs that cannot be directly attributed to a specific cost
object but are necessary for the operation of the business
d. Cost-Allocation Base
A cost-allocation base is a factor that links in a systematic way an indirect cost
or group of indirect costs to cost objects. It is a method used to allocate indirect
costs to cost objects based on a predetermined factor, such as direct labor
hours, machine hours, or sales volume.
The key differences between job costing and process costing include:
o Product Uniqueness
Job costing is best for industries where products are made per customers’
demands, while process costing is best for industries with a vast volume of
similar products.
o Cost Determination
In job costing, the cost is calculated after completing the job, while in process
costing, the cost of each job is determined as the work progresses.
o Losses
In job costing, losses cannot be separated, but with process costing, losses can
be separated.
o Work in progress
With job costing, there may or may not be any work in progress (WIP). With
process costing, there is always WIP at the beginning and end of a period.
o Record keeping
For job costing, keeping records is tedious and time-consuming, but process
costing keeps things streamlined and efficient.
o Industry
Job costing is best for industries where products or services are customized
based on consumer’s demands. Process costing is best for mass production
3. Explain how the cost of a cost object/job is determined under a job-costing system
In a job-costing system, the cost of a cost object or job is determined by tracing the
cost of direct costs to the job and allocating the cost of indirect costs to the job
usign a systematic method. After identifying the cost object, the cost of direct costs
is traced to it. Then, necessary cost-allocation bases are selected for all relevant
indirect costs. The overhead rate is calculated for each cost-allocation base, and
indirect costs associated with each cost-allocation base are allocated to the chosen
cost object. Finally, the total cost of the job is calculated by adding all direct traced
and all indirect costs allocated to the cost object.
o Time tickets
These documents are filled out by employees to record the time they spend on
each job. They are used to track the direct labor costs associated with a job,
ensuring that the correct labor costs are allocated to the job.
7. Which of the following does not accurately describe the application of job costing?
a. Finished goods that are purchased by customers will directly impact cost of goods
sold.
b. Indirect manufacturing labor and indirect materials are part of the actual
manufacturing costs incurred.
c. Direct materials and direct manufacturing labor are included in total
manufacturing costs.
d. Manufacturing overhead costs incurred is used to determine total manufacturing
costs.
a. Finished goods that are purchased by customers will directtly impact cost of
goods sold. Under job costing, the cost of goods sold is determined by the cost
of the job, which is calculated by adding the direct costs (direct materials and
direct labor) and the indirect costs (manufacturing overhead) allocated to the
job. The cost of the job is not directly impacted by the sale of finished goods to
customers.
PART II
Sturdy Manufacturing Co. assembled the following cost data for job #23:
What are the total manufacturing costs for job #23 if the company uses normal job costing?
Answer:
Total manufacturing costs include Direct materials, direct manufacturing labor, and
manufacturing overhead applied.