Ateneo de Zamboanga University
School of Management and Accountancy
Fr. Eusebio Salvador, SJ Campus
La Purisima St., Zamboanga City
SESSION GUIDE
Subject: COSMAN1: Cost Accounting and Control
Content: Job Order Costing
Date: September 19, 2025
Learning Intent:
1. Explore different methods of applying overhead
2. Journalize transactions related to completion and sale of job order
Study session (pre-classroom activity)
1. Give module about Job Order Costing
Session flow (in-class)
I. Priming Activity (Context) – 10 minutes
1. Review the concepts about Job Order Costing
2. This is the sample problem to be given as an activity
Meow company uses a normal job-order costing system. It processes most jobs
through two departments. Selected budgeted and actual data for the past year
follow. Data for one of several jobs completed during the year also follow.
Department A Department B
Budgeted overhead P100,000 P500,000
Actual overhead P110,000 P520,000
Expected activity (direct labor hours) 50,000 10,000
Expected machine hours 25,000 50,000
The following data was given for Job 10
Direct materials P60,000
Direct labor cost
Department A (5,000 hours @ P6 per hour) 30,000
Department B (1,000 hours @ P6 per hour) 6,000
Machine hours used
Department A 100
Department B 1,200
Units produced 10,000
1. Compute for the total cost and per unit cost of Job Order 10 using the following
independent assumptions
A. Overhead is applied at 60% of the actual direct material cost
B. Overhead is applied at 70% of actual direct labor cost
C. Overhead is applied based on direct labor hours
D. Overhead is applied based on machine hours
E. Overhead is applied based on departmental overhead rates Use direct labor
hours for department A and machine hours for department B
2. Assuming Job Order 10 was finished and sold in June and Meow company
charges 40% markup to the customer, record the journal entries related to
completion and sale of Job Order number 10.
II. Activity (Experience) – 15 minutes
1. Group the class into 5 groups
2. Give the sample problem about Job order costing. Each group will answer the problem
assigned to them
Group 1: Letter A
Group 2: Letter B
Group 3: Letter C
Group 4: Letter D
Group 5: Letter E
Each group shall present their answers.
III. Analysis – 10 minutes
1. What is the context of each question?
IV. Abstraction – 20 minutes
Discussion points:
1. There are different methods of applying overhead to the job order
2. Overhead is applied to the job orders to serve as a basis of computing for the
product cost and to determine the acceptable price (given the company will record a
markup)
V. Application – 25 minutes
1. The second part of the case will be computed by the respective groups
Group 1: Letter C
Group 2: Letter E
Group 3: Letter D
Group 4: Letter B
Group 5: Letter A
Each group shall present their answers.
VI. Reflection/Action (can happen anytime during the experience and application)
1. What are the clarifications I learned during the class?
2. What can I do to reinforce the concepts I learned during this class?
3. Can I explain this concept to someone who needs help in accounting and/or finance?