A finished ACC-360 Topic 2 job cost sheet example, costing one custom job from its source documents, applying overhead at a defended predetermined rate and reconciling the year's applied overhead to actual. Searches like "acc 360 topic 2 assignment example", "acc360 topic 2 sample" and "acc-360 topic 2 example" land here.
What a finished ACC-360 Topic 2 job cost sheet looks like
The finished sheet follows one job from its first requisition to its transfer to finished goods. Materials come from four requisitions totaling $6,850 in the illustrative figures, each listed by number and date. Labor comes from time tickets, 110 hours at $28, or $3,080. Overhead is applied at $30 per direct labor hour, a rate set before the year began by dividing estimated overhead of $360,000 by 12,000 estimated hours, and it adds $3,300. The job's total cost is $13,230. A separate panel explains why labor hours were chosen as the base, since supervision, supplies and the finishing booth all run while crews work. A final panel closes the year: actual overhead of $372,000 against $378,000 applied leaves $6,000 overapplied, and the example says where that amount goes.
How an ACC-360 Topic 2 example is structured
The sheet itself comes first, with two supporting panels after it. At the top sits the job's heading: number, customer, description, start date and completion date. Direct materials are listed next by requisition, with quantities, prices and a running total. Direct labor follows by time ticket, showing hours, rate and the worker's role. Overhead is then applied, with the predetermined rate, how it was computed and the hours it was applied to all stated. A total line closes the sheet and records the entry that moves the job from work in process to finished goods. The first supporting panel defends labor hours as the base. The second compares the year's applied overhead, 12,600 actual hours at $30, with actual spending and disposes of the $6,000 difference, closing it to cost of goods sold because it is small.
Every figure traced to a document
Requisition numbers and time ticket numbers appear beside each amount, so a reviewer can check any line of the job against its source record.
The rate built before the year
Estimated overhead of $360,000 over 12,000 estimated labor hours gives $30 an hour, fixed in advance so jobs can be costed as they finish.
Labor hours defended as the base
Supervision, shop supplies and the finishing booth all consume resources while crews are working, which is the argument for charging overhead by the hour.
Applied set against actual
At year end the shop applied $378,000 against $372,000 actually spent, and the example reports the $6,000 overapplication rather than letting it disappear.
The difference disposed of and explained
Because $6,000 is small against total overhead, it is closed to cost of goods sold, with a note on the proration a larger difference would require.
Where marks go in ACC-360 Topic 2
Applying overhead at actual cost when the year closes is the costliest mistake on this sheet, since no job could then be costed until the books were shut, which defeats the point of a predetermined rate. A rate that appears without the estimate and the hours behind it gives the reader nothing to test. Adopting a base without saying why it fits is the next loss, since labor hours suit this shop only because its overhead moves with crew time. Applying the rate to the job's estimated hours instead of its ticketed hours mixes a budget with an actual. Papers that stop at the job total and never compare applied with actual overhead leave the year's costing error unmeasured. Closing a large difference to cost of goods sold, when proration is warranted, misstates inventory and income.
Get an ACC-360 Topic 2 example written to your instructions
Send the ACC-360 Topic 2 instructions, the rubric posted in your classroom and the job data or case your section provided. We write a custom example to those criteria, with every cost tied to a document, the overhead rate built and defended, the job totaled and transferred, and applied overhead reconciled to actual, returned in 24 to 48 hours. The first one is on us.
ACC-360 Topic 2 questions, answered
Why use a predetermined rate instead of actual overhead?
Because jobs finish throughout the year and need a cost when they do, for pricing, billing and inventory. Actual overhead is known only at year end, and it also swings with the seasons, so a monthly actual rate would charge identical jobs differently depending on when they were built. The predetermined rate trades a small year-end correction for costs that are available and consistent.
What happens to overapplied or underapplied overhead?
It is closed out at period end. When the amount is small, most courses close it entirely to cost of goods sold. When it is large, it is prorated across work in process, finished goods and cost of goods sold, often in proportion to the overhead already applied to each, since all three received the misestimated rate. Follow the method your instructions specify, and say why it suits the amount.
Does a job cost sheet need an allocation base argument?
It is what separates a strong example from a filled-in form. The rate is only as sound as the base beneath it, and a shop whose overhead is mostly machine depreciation would be miscosted by labor hours. One short paragraph explaining why the chosen base moves with the shop's overhead tells the reader the applied figure means something.