De Anza College Accounting 1C– Job Cost Project – Instructions

Object: To create, account for and market a manufactured product. Your group should be no larger than SEVEN (7) people. You will need to have product engineering, assembling, marketing and sales functions.

Step 1. Design a product. The product can have a maximum of SEVEN (7) parts. You may want to visit the stockroom and survey available parts. Come up with a name for your group. Decide on a job number as well.

Step 2. Create and complete a materials requisition form. Go to the stockroom and get the materials noting the cost of each part…you will need the cost later for the job cost sheet. Create a job cost sheet and record the information from the materials requisition on the job cost sheet. Then give the materials requisition form to the stockroom managers. The form should include your group name and job number.

Step 3. Create a time card. Be sure to include spaces for the job number. Decide on a labor rate. The rate should be in dollars per second.

Step 4. Assemble the product. Time the assembly process and then fill out the time card based on the number of seconds it took to build the product.

Step 5. Finish filling out the job cost sheet. Account for the materials, labor and overhead. Use an overhead application rate of $15 per direct labor second.

Step 6. Make a marketing presentation to the class describing your company/group, your group members, and finally your product…features and sales price at a minimum.

Step 7. Make a financial presentation to the class showing your job cost sheet.

Step 8 Turn in your time sheet and job cost sheet with the names of all group members.