Accounting NCEA 3 - Job Costing ledgers

Job Costing ledgers

Raw Materials control

Balance

Accounts payable (purchases) No GST Dr

WIP (Direct materials) Cr

FOH (indirect materials) Cr

Work In Progress

Balance

Direct Materials Dr

Direct labour Dr

FOH (using rate / POH) Dr

Finished goods Cr

Labour Control

Bank Dr

WIP (direct labour) Cr

FOH control (indirect labour) Cr

Factory overhead control

List all FOH expenses Dr

FOH applied (use rate*actual hours) Cr

COGS (a name to make it zero)

Finished Goods Control

Balance

WIP (Finished goods from WIP ledger) Dr or Cr

COGS (a name to make it zero) Cr

Cost of goods sold

Finished goods Dr

FOH control (under applied/over applied) Dr or Cr

POR (predetermined Overhead Rate) =

Estimated factory overhead total/Estimated chosen cost driver overhead

Things to remember!

• Take off GST on purchases

• Use actual figures on ledgers