 In this presentation, we're gonna continue applying overhead to jobs get ready because here we go was zero Here we are in our job costing company dashboard We're gonna start off going over to our excel worksheet to get an idea of our objective We're gonna be continuing on with these overhead type of items the last time we spent the overhead type of items Or we looked at the overhead item of the indirect labor now We're gonna be moving on to indirect materials factory utilities Factory rent depreciation these sound like very different things. They are very different things However, they have a similarity that is that we cannot apply them directly to the job Therefore, we're gonna have to use some other method to record these and then allocate them to the job So we're gonna be using percentages to do so it's gonna be a similar process So I won't go over as much detail in the setup here We'll just kind of continue with this but each of these items will basically be broken out the 19 the 33 percent for job 14 15 and then 16 48 percent so we're in essence just going to record this as a cost a good soul type of item But then use that allocation method to apply them to the current jobs that we have in place All right, so the next one that we have then is going to be the Indirect materials for the 30 000 Transaction from a journal entry standpoint the same right? We're just going to debit the cost a good soul credit the cash because we're going to imagine We're actually paying for the materials in this case. So we're paying for the materials It's going to be going into cost good soul the credit then going To the cash So that's going to be the effect here It's going to be going into this cost a good soul account And then we need to consider where it will go or how we will break it out as well When we enter it into the job cost as we did here with the 5,700 to 14 to 9,900 to 15 and the 14,400 to job 16 Now we're going to do that in the zero system. So we'll go into zero here We're going to select the little plus button up top and we want to go to spend money So plus button and then to spend the money Money's going to be going out of the checking account So we're going to go into that checking account and then say next And then the money is going to go to let's say home depot Which we may have set up already I'm going to say home depot tab And then I'm going to pick up the date and the date we're going to put this as of what's the date that we had on here Let's just check it out. We're going to go the 12th. No, no, no, no, no It's the 30th So january 30th. So we'll select the drop down Bring this on back to january and then we'll bring it up to january 30th And then we're going to be picking our items. So the items then So I'm going to add a new item. So I'm going to go back up and add a new item And then I'm going to put in the item code. This is going to be in direct materials And then we I'm just going to copy that I'm going to copy that I'm going to put that in the item name. We're going to make our double-sided item. So the purchase side is going to the Uh purchases. So this is going to be Indirect materials and tab I got to add it. So I'm going to go add Indirect materials. We're going to set up the account. So I'm going to say it's going to be that item Now I jumped over to our chart of accounts just so we can see our account numbers now No, we're in we're going to be in like the subcategory of overhead So we want to want to be in the in the range of the 580. So I'm going to say 584 here So we're going to be picking up 584 584 Uh, so that's going to be here 584 for the code And then the type of account is going to be the cost of goods sold Or uh, it's going to be in the expense category. It's going to be the direct costs So we're going to pick up the direct cost and even though it's an overhead Type of account because it's going to be in the cost of goods sold Subcategory we're going to put it into like an overhead type of account And then the name is going to be the name Indirect materials description looks good. So let's keep it at that and then I'm going to say Save So we'll save that item. So there's the item And now we want to say that we sell it to to have the double-sighted item So on the sales side, we're going to be picking up account number 400. I believe it was 400 Let's check it out 400 yes the sales account So that looks good. That looks good. So that's going to be our new item We set up a new account while we set up while we set up the new item Then we're going to say save And there it is and if we tab through there, that looks good That looks good. And then the price we're going to have if I pull back over We're going to pick up the price in accordance with the jobs. So we're going to start off with that 5700 which is going to be going to job number 14 So let's pick that one up. We're going to say 5700 And that's going to be going to the account the amount's going to be 5700 5700 Now note that sometimes the account that the account should populate by the item If it does not then it might be a glitch kind of thing because I've had it happen And it often happens when you're zoomed in that it doesn't pick it up because it should be pulling up from the item What I would then do is close this report Go back into it or this form close it and go back into it and then it should populate if you are zoomed in Close it then zoom back down to 100 percent and then go back into it Now this is going to be applied to job number 14. We will do so down below once we assign the jobs At the end. So I'm going to assign the three jobs first. So I'm going to do this again indirect indirect materials And this is going to be for the amount of if we jump on back over to the excel sheet We're looking for that. Now. We're picking up the 9900 so the 9900 is what we want So I'll put that here 9900 And then we're going to do this one time one more time. That's for job number 15. This is for job number 16 as you may have guessed Most likely and this is going to be then job number 16. We're going to pull this out over here That's going to be for number or number 14400 So we'll go back over and say this is going to be 14400 And that totals up to our 30 000 down below Now let's go ahead and assign these to the proper jobs by going to the assigned expenses to the cost or project I'm going to select the first one. I'm going to assign that to job number 14 job number 14 or project number 14 So there we go. Make sure to hit assign before you continue on then the little 14 will pop up on the right hand side Which means that it's been properly assigned so we can uncheck and check again and Move forward to job number 15 And that's going to be assigned to the second one that i'm going to assign that out the little 15 pops up there Meaning that like it got assigned at 15 and then we're going to go to 16. We're going to do the same thing job number 16 Pick up that one and then assign that one out and then we get the 16 there All assigned out so we're going to say okay with the big blue the nice big blue button We get to finally push which we've been wanting to do for a while. We got job number 14 15 and 16 now applied out to the form What's going to happen when we record this it's going to be taking the money out of the checking account pain In theory here to the home depot Then the other side is going to be going to driven by the items that cost a good sold account Which is going to be the indirect materials which we can then further group into overhead using the grouping on the forms And then it's also going to be applying that out to the jobs 14 15 and 16 Let's go save and let's do another let's say save and add another So thank you for that form may we have another and then I'm going to go back up and I'm going to uh make these green Because they've been done. They've been completed at this point So I'm going to make them green which is the indication Of that very thing. So I'm going to highlight those I'm going to right click on them And make it green So drop and we want it green. All right Next one next one. We got three more of these to go here. You got to pick up the pace pick up the pace So we're going to be down here same thing for the factory utility So this is utilities on the factory where we do work do jobs Therefore, we're going to have to allocate it out. We want to apply it to the cost of the job But we don't know exactly how so we're going to use some type of allocation method being our percentage method Same transaction debiting cost of goods sold crediting cash We're going to be paying we're imagining the utility company like Edison or something and then Our cost of goods sold then over here is going up by that transaction cost of goods sold is going up And we need to support that by the jobs which we're going to be breaking out in accordance with our percentages that we figured out 1933 and 48 So let's do that same process in essence even though it's a different type of uh expense here We're going to say this is going to edit this Because that's our utility company And then this one's going to happen on the 30th as well Let's hit the old drop down and look for uh january 30th that's the one we want And then i'm going to say this is going to be the item of utilities Which we don't have so i'm going to have to add it So i'm going to hit the drop down and add it so drop down Which is the rise up right now rise up It's got an arrow going down, but it's really a rise up right now And then i'm going to say this is going to be Utilities And then i'm going to copy that i'm going to put that in the name And so there we have it and then the purchase account I'm going to make up another account now We might have a utilities account already, but i want to make one in the job costing So i might name it something slightly different and again i want to be somewhere in here, so i'm at 584 i think we used last time So i want 586 So 586 And then the account type is going to be that direct costs And we'll play say call it utilities, but let's say like utility utilities for the job or something like that to differentiate it from like other utilities That would be not on the factory but on some other place that wouldn't be part of the job costing system Okay, so there we have that let's make it a double-sided item by selecting the one below two and then we're going to say that There's going to be utilities Well, that's not the one we want hold on a second. We want 400 the sales account down here Okay, that's our typical double-sided item. That's how it's supposed to look So let's go ahead and then save that so we'll save that one out And then we're going to be tabbing through this and we'll pick up then The expense which is 2280 2280 on the unit here 2280 And it see it didn't pick up the account again I'm going to close this form and go back into it and this this account will probably populate by itself So what i'm going to do is i'm going to cancel this And then i'm going to go back into it And that utility account or that account should populate So we'll close this out. I'm going to hit the plus button And then i'm going to say I want to add a new spend money form From the checking account and then i'm going to say next This is going to Edison Edison our utility company Edison I should be saving these Edison and then i'm going to say this is going to be on January 30th And then i'll put the utilities down here utilities And then the account populates properly as it should have last time So if that happens to you you can just go back into it 2280 So we want the 2280 once again 2280 That's going to be for job number 14, which will apply shortly and then utilities once again This is going to be for job number 15 if I go on back over to the excel sheet then We have the 3 9 6 0 3 9 6 0 So we'll go back on over here and we'll put in 3 9 6 0 And then we're going to say utilities again So utilities And this is going to be for the last one we're going to go back on over and scroll down just a bit And that's going to be for the 5 7 6 0 5 7 6 0 So we'll go back over here and put uh 5 7 6 0 And then we're going to assign these to the jobs So we're going to say assign expenses to the jobs We're going to be picking the first one which is going to be going to job number 14 So we'll put a little 14 here so we could find number 14 Then we'll pick number 14 and make sure to assign it Then you'll have a 14 pop up over here indicating that it has indeed been assigned Then we're going to do the same for job number 15 Picking up job number 15 for the second item and assign that there's the little 15 Which makes us feel good that things have been done in a proper fashion Now we're on the last one job number 16 Job number 16 picking that one up Assigning it out assigned once 14 15 and 16 have been assigned We can further see that if we say okay and apply with that big blue button Here 14 15 and 16 having been assigned going to the 12 000 being the total What's going to happen when we record this decrease to the cash account The other side is going to be driven by the items going to the cost of goods sold account Which is basically like an expense account and then it's going to apply to the job 14 15 And 16 or the project however you want to name it All right, let's save it and have another So thank you for that form. Can we have another and then we'll go back on over here and I'm going to be like highlighting These items again I'm going to make them green because that's the color that indicates that we have completed that particular task Which we have indeed done and therefore We're going to make it green And then we've got the two more to go here So two more to go that last one's going to be a little bit different So so be aware of that if you're going to jump ahead if you feel like jumping ahead here If you think you got this but that depreciation a little bit different anyway factory rent same thing We're going to say this is going to be rent on the factory where we do a bunch all of the different jobs We want to apply it to the job. We don't know which job to apply it to so we're going to assign it out using that percentage method So we're going to debit cost of goods sold credit the cash It's going to be going increase in the cost of goods sold. We're going to further support that With our job. So it's going to be broken out for the three eight and the six six and then The nine six here. So that's what we're going to be doing Let's go back on over to our form here and this was for rent So I'm just going to call it the rental company. This supposed to be who we pay the rent to The rental company They just call themselves the rental company And then we're going to say the date bring that on back to the 30th And then we have our item. So we're going to set up our item again So I'm going to select the drop down for the item The drop down it doesn't want to drop down or rise up There's the rise up and then we're going to go to new item And we want to pick this is going to be rent So we'll just say that's going to be the rent for the item and then tab and Whoops, I didn't copy it. So rent And now I'm going to highlight it and copy it Tab tab and then we're going to put a purchase account. So I'm going to add an account here We're going to add another account And this time I'm going back over here just to check the account numbers. I'm going to refresh this screen So the last one was this five eight six. So we're at like five eight eight. I think five eight eight So I'm going to put here five eight eight And then the account type is going to be the direct costs direct costs And then this is going to be rent a rent And then I'm going to say rent For jobs, let's say just to differentiate from any other rent. All right, let's set that up. Let's say save And see if it uh, then it populates here. That looks good And then I'm going to make it a double-sided item. So we'll make it a double-sided item the other side going to 400 the account number 400 And there's our double-sided item. So and then I'm going to say save And then once again, it doesn't pull up the the rent account, which is very frustrating So rents It's kind of glitchy on that. So once again, I'm going to I'm going to close this back out I'm going to go back into it and that account should then populate For us, which I'm pretty confident it will at this point. So I'm going to close it back out I'm going to hit the plus button And I'm going to go to spend money. We want the old spend money form And of course, we're going to be spending money out of the checking account So the money's going to be coming out of the checking account as normal as per normal when we spend money on stuff And then this is going to go to that rental This is going to go to the rental company They collect rent and then we're going to pick the date up is going to be january Uh, january 30th. So that looked good. And now we're going to pick our item, which is rent So there's the rent item And that now it populated the account populated properly. See I told you it would Be fixed if we did that. So then this is going to be the three eight zero zero job number 14 So we're going to say this is going to be three eight zero zero And then we're going to do this again for the rent Rent again for job number 15 back on over to excel. That's going to be the six six zero zero So we'll go back on over and put that number in because that's the number we need So it's going to be six six Uh, zero zero was that it and then rent I think it was And then rent here I heard Here one more rent One more And this one's going to be For the amount of the nine six zero zero so nine six zero zero Oh All right back there All right nine six zero zero And there is that and that adds up to the 20 000 so that's good now We're going to assign them to the jobs once again. So first one's going to be assigned to 14 job number 14 And then we have to hit the assign button 14 then appears indicating that it has indeed been Assigned job number the second job is going to job number 15 The second thing is going to job number 15 And then we're going to Unclick that and the last item we should say item. That's what I should call them. It's going to job number 16 There they go for so they're fifth and this one hit assign make sure to hit assign 14 15 and 16 have now been assigned and we can now hit that shiny blue button It's really distracting button. It makes you want to hit it before you're done But here's the 14 15 and 16 now being assigned here. What's this going to do decrease the check it account It's going to be driven by these items going to the cost of goods sold account and then be applied to the jobs 14 15 and 16 or project. However, you want to label them. Let's do one more. We're going to say save and another Save and another this is the last one we get to do. This is good times. We're getting good at this But oh this last one's a little bit different too. So I'm going to highlight these three To indicate that they have been done As I'm going to I'm holding down control as I highlight them Right-click and make them green Now the last one's going to be for depreciation So it's going to be depreciation here depreciation is going to be the last item That one's a little bit different because we're not actually cash is not leaving Leaving the hands here. So cash isn't going down It's still going to go into basically the cost of goods sold account But the other side is decreasing an asset basically. We're decreasing the fixed asset So no cash involved. So you might think normally you'd think well, we should do this with a journal entry That's what normally the depreciation that thing is done with but we can't do that because we can't apply to the jobs Because we can't use the items on a journal entry. So we're actually going to use the same form Uh, we could we could use the the money out form But we're going to use it as a journal entry. It's going to be a zero money out We're going to use that form as a journal entry to record it to cost a good sold Then the other side go into the accumulated depreciation. So this is similar Your depreciation journal entry you should have you know, memorize you should memorize that as basically depreciation expense is normally debited Then you credit the accumulated depreciation Same thing here except that that expense is going to be applied to in essence the job So we're going to put it into a cost of goods sold item so same Theory with the breakout they're still going into cost of goods sold So we're going to be breaking that item out for the five seven the nine nine and the 14 four All right How can we do that? This is going to be great a little bit different a little bit of a change up on the last one here So we'll go back on over And we're going to say this one. It doesn't matter who it's going to because this is an internal Form this is going to be on january 30th once again as as has been the case For these items. So we'll put this in there for the january the 30th of uh january somehow I got up to june I'm sure how that happened But i'll bring it back and put that on january Okay, so the item i'm going to call it depreciation. So we need another item for this So i'm going to say we need a new item new item, please And we're going to set it up. I'm just going to call it depreciation And then copy that i'm going to put that in the item name And then the purchase account i'm going to set up a new purchase account as well So we'll set up a new purchase account and it's going to be code number Code number, uh, eight. I think we did eight eight. So let's go eight nine or five nine zero five nine zero Let's back over here. So i'm going to say five nine zero on the code Account is going to be the direct costs again The name i'm going to say let's say depreciation for the job And let's do that. That looks good. Then we'll say save on that one. So let's save that And so that looks good. Then we have the item. So we have the double-sided item We need down here. We're going to be putting this to number 400 For the revenue side of things and that looks good I think everything is proper. So let's go ahead and say save then See if it then populates once again, it didn't populate the account So i'm going to cancel this and then go back into it. So it'll populate The account so i'll cancel it. I'm going to go plus And I want to say I'd like a new spend money form new spend money form It's going to be coming out of the checking account And we're going to say okay and next And then i'm just going to say miscellaneous for the two here We'll just pick up the old miscellaneous. This is going to be for january 30th So we're going to go on back to january january 30th And then we're going to pick up the item And the item is going to be the item is going to be depreciation depreciation And all right there now the account picked up just like we knew it would And that's going to be for job number 14 the 5700 5700 5700 5700 5700 5700 0 0 And then the next one is going to be depreciation as well And we'll pick up the amount going back to the expense account here back to the expenses That's going to be for the 9900 9900. So we'll go back on over And we'll put that here for the amount that's going to be the 9900 And then we have the next one which will also be depreciation And that one if we go back on over to excel and see what that last amount is that we're going to put there It's going to be the 14400 144 144 So we'll be over here 14400 And that adds up to the 30 000 so that's what we wanted So we're going to then apply these out to the expenses as we have seen in the past First one applied out to job number 14 Or customer so job number 14 assign it Then uncheck that one check off the next one which is going to be going to job number 15 job number 15 Picking that one up You can also be calling these projects of course uncheck that one Check off the next one now going to job number 16 job number 16 Clicking that one up assigning it. They have all been assigned here looks proper Let's click that shiny blue button whoo click Ah, that's so nice to click that thing. I don't know why here we go 14 15 and 16 Now we're not quite done here because if we were to record it now It would be decreasing the checking account by the 30 000 the other side needs to be increasing the contra asset account of accumulated depreciation We need to record record the other side of basically our journal entry, which is you know debit debit to the to the Cost of good sold depreciation account the expense account and then the credit Is going to go to accumulated depreciation. So how are we going to do that? Well, we're going to add another line here I'm going to add another line. I'm not going to have an item. I'm just going to be putting it right to the account And so I'm going to be recording Then the amount of negative 30 000 negative 30 000 You know one there And then it's going to be going to the account of accumulated depreciation Let's hit the drop down which will rise up And then we're going to go down and see if we can find the depreciation Which should be in the assets accumulated not that depreciation expense, but we're in the assets section So we have the office equipment the computer equipment. We want this one 151 for the accumulated depreciation That brings the amount down to zero. So what's this transaction going to do? It's going to record This information into the cost of good sold expense account apply it out to the job Properly the other side go into the balance sheet account but not decreasing cash rather Increasing the contra asset account decreasing assets in total of the accumulated depreciation So let's go ahead and do that. So we're going to say record or update in my case I'm going to update this because I messed with it a little bit. So we're going to record that Then we'll take a look at the financial statements We're now going to go to the accounting drop down. Let's go on down to that balance sheet Take a look at the balance sheet We're going to then go into the current year, which is going to be so 2020. Let's go to the end of january 2020 And then we've got our checking account. So a lot of these hit the checking account Not that last one, but everything else basically went through the checking account. These are things that we actually paid Applied them out to the proper cost of good sold and then applied them to the job as well So if we go into this item scroll down, here's our information for the money going out Here's the rental company. Here's the Edison. Here's the home depot. Here's the total amounts These are the total amounts not the amounts we applied out to the jobs These are the total amounts that went to these individuals to the rental company to Edison the utilities and Home depot for the for the supplies indirect supplies So then I'm going to go back And then we're also going to be opening up our income statement now. So I'm going to go back here I'm going to right click on this tab up top now so we can duplicate it So I'm on the tab up top right click and duplicate it Then I'm going to go back to the tab to the left and we're going to open up the income statement Go into the accounting drop down and then open up that income statement And there it is. There's our income statement. Everything is in the cost of good sold So if we scroll down the cost of good sold then we have both the direct materials the labor and And now the components of the overhead in here as well So the things like the rent jobs are going to be in the overhead the depreciation is the overhead Now note it's all kind of combined in the cost of good sold if we want the sub-accounts breaking out to the the Direct labor the direct material and the overhead then again We can use the layout tab to really do that to really customize this report And and we can then memorize those customized reports for internal reporting and external reporting So we might take a look at that at a later time But just remember if you're used to a quick books type of format Then you might be you might be used to a sub-account kind of system and thinking about how you would Think put the sub-accounts sub-accounts are great. There's pros and cons to them as well However, because sub-accounts can get messy if you have a lot of them as well Or you can use this this this software has this Reporting feature that's a gets some more flexibility in grouping in terms of the reporting Which which can be useful has its pros and cons as well So we might talk more about that grouping At a later time in a later presentation But we could see those cost of good sold items in here if we were to zoom in on any of them Again, we could go back of course to those source documents Let's go ahead and right click on this tab up top again and duplicate that tab So we'll duplicate that tab go back to the tab the left then let's go back up to our projects So if we were to then open our projects and go to say all projects We get the summary job 14 15 and 16 if we were to go into a job say job number 15 We're going to have our information and again our information down below You can see how it's then assigned out here You can hit the three dots to any of these assigned areas to look at the source document The basically money out form that we had Or to edit the actual ticket that has been created from it or look at it or edit it Whatever you want to do with it and then we're going to go to the reports So let's go to the projects drop down I'm sorry. Let's go to the accounting and then go to our reports and take a look at our Project reports at this point in time. So we'll scroll on down looking at the projects reports We want to open the detail reports. So the project detail going to select the drop down up top I'm going to select all the projects and then remember y'all I'm just going to keep this date static as as is right. I'm going to change the dates with the filters So if I could see all reports, here's here's all the jobs If I was to I would always basically adjust this and save the report after adjusting it to say I want to see the date I want to see the date on on these items and then say update And so now We'll be able to say see the date column over here and that'll really help us with the cutoff in terms of what period it's in You could sort by date then if you so choose so you could see what was in 2019 versus 2020 If we bring this all the way down job 15 16 14 15 and 16 here we see our totals adding up to the 191 140 for job number 14 if I go back over here 1 9 1 9 same number If I come here and then if I go to the second job job number 15 the the 3 14 9 80 so we've got the 3 14 9 80 is going to be here and then The last job if we go into the last job We're going to say that that's going to add up to the 2 250 880 250 880 so there is that they all add up to the 757 They should so there's there's going to be that we're going to scroll back up top And now let's take a look at the date So if I wanted to take a look at at the date ranges and just see the current period Then you're going to go into the filters down below I'm going to go into the filters and I want to filter by date So I want to add the date filter and I just want to see the stuff that's in 2020 so if I was to go okay, I just want to see january 2020 And uh the 31st for 2020 and then update that report Then uh, we're going to have our data for 2020 so there we have this for and we don't see any information For 2019 that's going to be you know really useful if we want to tie this information out this then we'll tie out to The income statement. We're at the 674 So that should tie out to basically the cost of goods sold On the income statement the 674 and on the balance sheet It'll tie out to the the information in the current period for the balance teach that the 674 So remember that's that means that these jobs have you know Some of these jobs have more items in it from the prior time period And you got to think about uh that cutoff how that cutoff basically works So that's going to be it for now. Let's get out of here