 In this presentation, we will continue on with our transaction that is applying the raw materials to the jobs. Get ready, because here we go with zero. Here we are in our job costing company dashboard. We're going to start off by going over to our Excel worksheet to consider what our objective will be. So here we are in the Excel worksheet. We are in the EX 1.7 tab. If you're going to be following along here, you'll recall last time we saw that we're going to be transferring items, transferring from raw materials to the cost of goods sold. And that means that the raw materials are going down. It's going to the cost of goods sold from a GL standpoint, easy transaction. We're just decreasing the raw materials from 400,000 by the 350 down to 50,000. Other side going to the cost of goods sold. However, the item going to the cost of goods sold has to also be supported by the job sheets. So we can apply these to the job sheets. That's what we've been working on within zero. So we've done that with job number 14, and we did this kind of all at one point in time. So you see that the zero is going to make it easier for us to do this, of course, to tie out the job sheets to the cost of goods sold, which is basically one document with the use of the items and the forms. Now we're going to do the same thing for the job number 15, where we applied out the 170,000 for the direct materials here in our worksheet. We're going to do that for job number 15, applying it out and also giving more information in terms of breaking out the direct materials to different components of the direct materials. So that's what we're going to do now. I'm going to be focusing in on here on this one. Remember, we're not going to be doing a journal entry to do this, even though cash is not affected. We're going to be using a form to do this. So that's the tool that allows us to be making items. So to do this, we're going to be back in zero, back to zero. We're going to select the plus button up top and we're going to go to a spend money, spend money type of form, even though we're not actually spending money. So it's kind of funny. And you may want to set up another kind of account like a clearing account to do this. It won't affect the checking account, but it will create these zero transactions that you'll have to basically clear out in the bank reconciliation process. So I'm going to put it into the checking account shouldn't be a problem, but you may want to set up another account because if there is a problem, it'll create something that's not zero and you'll be able to easily detect it. If it was some other account other than the checking account, because any balance within it would indicate that they're one of these types of transactions had a problem with it. Okay. So we're going to bring this in the date. We're going to say this is going to be a miscellaneous. It doesn't matter who the vendor is because this is really just a transaction to help us record a journal entry. And then I'm going to bring the date here back to January of 2000. That went way too far. It's going to be January 7th. So January 7th. That's the one we want. And then we're going to go down here and we're going to add items once again. So we're going to add direct material type of items, but we're going to give more detail. We're going to start off with the wood finishing. So I'm just going to type these in here. These are going to, of course, add up at the end of the day to that 170. So we're just going to keep adding stuff till we get to that 170. So here we go. Wood finishing and we're going to say that that was for 30,000. We will be applying this to job number 15. But we'll do that at the end with these assigned expenses to customers function down below. So then we're going to say the next one's going to be wall covering wall covering. And that's going to be for the 21,000 21,000 on the wall covering. And then we have the stucco stucco is going to be for 29,000. We're going to say 29,000. A lot of stucco. And then we're going to say that the flooring flooring is going to be for. We're going to be picking up the flooring. Actually, I should be the next one is staff. Let me redo that. I'm going to say staff. And there that's the one I want staff. Now that's not that's not wages. That's going to be as it says here in artificial stones. That's the artificial stone staff and that's going to be for 15,000. And the next one we want is going to be flooring. Now the flooring was going out of order, but I still want the flooring. Flooring is still necessary. And that's going to be for the flooring at the 26,000. And then we're going to add another line. So I'm going to go on back down. We're going to say I need a new line, please new line. And then we're going to have the dropped ceiling, the dropped ceiling. So we're going to drop that ceiling. And that's going to be for 11,000. I drop things all the time doesn't cost anything. And then we're going to have the ceramic tile. So let's add another one. And we're going to say this is going to be ceramic tile. And that is going to be for the 6000 6000 for the ceramic tile. And then lastly, we'll add another one. One more for the last for the lastly one. And that's going to be the surface finishing. And that's going to be for 32,000, 32,000. Now the point is that it should be adding up to the 170,000 at the end of the day. If we were to leave it here, then it would be decreasing the check-in account by 170. That's not what we want. These are going to the right GL account because they're driven by the items that we have here, which is going to be the cost of good sold GL account. So, but we also want them to apply to the job. So two things we need to do then we need to do the applied to job function here. And we need to somehow make it not go into the 170 decreasing the checking but rather decreasing the raw materials. Let's do the raw materials thing first. Let's add another line item. And I'm just simply going to say that this is going to be transfer from materials to job or something like that. You might want to put the job number in there would be useful. Let's put a job number. I should do what I say here. Okay. And then we're going to say this is going to be one and negative 170. That means it's going to be a zero transaction, meaning no effect on the cash account. But this is going to be affecting, of course, a journal entry, basically entered a journal entry. And now we can add the jobs to it because that's the use of this form by assigning to a job. So we're going to be assigning to the job. I'll hit the drop-down. See if it shows me. It doesn't show me. But I'm going to say 15 is the job I want. 15 is the job we want. And so then I'm going to select all of them. And then I'm going to unselect the last one. So I want all of them, but I don't want this transferred one. So that's what we have there. Now you'll be tempted once again to say okay down here before you actually assign them out. Don't do it. Don't do it. It's a big tempting blue button, but you don't want to hit it yet. You want to hit this assign button up top. So we'll hit the assign button. Then it has a little green thing here, which makes us feel good. And then it gives us the custom project is number 15. And you can see that it's properly been assigned at this point. Then you can finally go to that shiny blue button at the bottom that says okay and say okay. Now you can also verify that it's been selected here by seeing that it says the customer item down below. And you see the job, customer one. And then the job is related to that customer. So what's going to happen when we record this? It's going to be recording this driven by the items to the cost of goods sold item. So it's going to be recording the cost of goods sold the other side then not going to cash but to the materials. And it's going to be recording this information to the job or projects that being job or project number 15. Let's go ahead and save this. And let's do another one as we go. We're going to do two here and then check them out like all at the same time. So I'm just going to trust that that went okay. And they're giving me an error here right off the bat here. So two errors occurred for the following reasons. Account must be valid and tax rate must be valid. Now the account I see down here, I didn't apply it to the actual accounts. I'm going to go back down here and I put the description but not the account. The account is going to be raw materials. So we're going to say raw materials. There we have that. So that looks good. So that should be okay. Now I'm not sure what they're doing with the taxes. I'm going to save this. Let's say save and add another again. Okay. That made them happy. So that was good. That was good that they told me that. So that's nice. Now we've got that. We're going to do this once again. I'm going to go back on over to our Excel sheet. This time we're going to be doing it for job number 16. So we go down to job number 16 same kind of process. But now we're going to be adding up to that 80,000 and of course applying to job number 16. So I'm going to minimize this and we're going to be adding this information to I'm going to say to it's going to be miscellaneous. It's going to be the vendor. Same date. That looks good. Let's go on down to our items. All right. I'm going to try to zoom in and see if it messes up my form at all. So I'm going to hold down control. I'm at 110. Let's see. Let's do a little bit of a zoom here and see if that messes anything up. So be careful with the zoom because it can it can cause some problems at time. But I think we'll be okay. We're going to say this is going to be the cement cement render and that's going to be for the 12,000 12,000 on the cement render. Then we're going to be picking up the ceramic tile. This job has some ceramic tile. They picked out a good pattern, very nice pattern ceramic tile for this one. 21,000 ceramic tile. Next one, we have the flooring. So we have the flooring that we're going to be putting in place and that's going to be the 9,000. And then we have the next item, which is going to be paint. We've got to have the paint and that's going to be for the, what are we going to put that in the 10,000? 10,000. And then we're going to say that we have the marble. So marble and that's going to be for 21,000. We're going to say, alright, in our practice problem here and then we're going to add another line. And this is going to be then the plaster and the gypsum board, plaster and gypsum board. And that's going to be for the 7,000. Alright, that adds up to the 18,000 down below that 80,000 matching what's in our worksheet and our practice problems. We're assigning that 80,000 then to job number 16. So notice again, if we didn't do anything now, it would be decreasing the checking account by that 80,000. And it would be going to the cost of goods sold, which we want, but it's not applying it to the job yet. So what we're going to do is we're going to add another line. I want to say this is going to be a transfer to job number 16. And then I'll actually add the amount this time, which is a negative 80,000. And that'll bring it down to zero. And now let's add the account this time. So it doesn't give me yelling red things at me when I try to record it. So I'm going to say materials. This is going to be the raw materials. We want the raw material should be decreasing the raw materials. Now we need to assign it to the job. So let's go to the assign expenses. I'm going to select all of them and then remove the transaction for the last one. I don't want to pick up that last one so that we're going to assign to the job. Remember to actually assign it to the job by selecting the job, which is going to be number 16 this time, I believe. That's the one more on, right? Let me double check that. I don't want to mess it up. Job number 16. Yep, that's it. And then you got to make sure to hit the assign button. And once done, you'll see the little 16 pop up like it should. And then you can go down and say OK. And then before you complete it, you should probably check again that it has this job number applied to the areas that we want it to apply to. Now what's going to happen? It's going to be recording this driven by the items to the cost of good sold accounts. Other sides going to go to the raw material accounts. And then the jobs or projects should be updated as well. Before we save it, make sure the date up top is at January 7th, 2020. So we want to change the date if you don't have it at January 7th, 2020. So same as the other transactions. Then let's go down here and update or save the form. And then we'll take a look at the financial statements. Note that if you have any problems with that kind of date type of thing, you can adjust them. You can go back into the form, edit the form, and then adjust the dates with it. That could be a common problem for the date issue when we're dealing with practice problems here. As opposed to real life where hopefully we're working in real time in practice. And therefore the date will basically generally be as of the current time period we're entering the data. So in any case, now let's go to the accounting dropdown. Let's go on down to the balance sheet. Changing the date up to 2020, so January 31st, 2020, we will update that report. Scroll in down then. Now we see the 50,000 in raw materials. That should match what is on our financials over here in our Excel worksheet. So that's what we would expect. We're at the 50,000 in the raw materials. Looks good. And then if we go on back over, we see that the other side is going to be basically down here included in the equity section. Now the current year being at 350. Let's take a look at the income statement. I'm going to hover over the tab up top. Right click on that tab. Duplicate that tab balance sheet. Now to the right, I'm going to go back to the left where we can open the income statement. We're going to scroll back up to do so. We're going to go to the accounting dropdown. Open up our other favorite statement that being the income statement. So here's our income statement. If we scroll down through the income statement, we got everything in the cost of goods sold. This is now including of course those two or the three jobs that we have now entered into the system. So it now adds up to the 350,000. That's going to tie out to what is currently in the balance sheet, the balance sheet at that 350,000. Back to the income statement. If we were then to open any of these items, let's open up these cement render. We then have the activity down here. So we have the activity, this one having two of the spend money form. So we entered into the system for it. Now if we go into any of those, it'll take us back to the transaction. And then you can take a look at the transaction. So I'm going to go back to the income statement. Now we want to see this by project. So what I'm going to do is I'm going to duplicate the tab for the income statement. So I'm going to hover over the tab up top, right click on it, duplicate it. And then let's go back to the tab to the left. Let's first go to our projects area. So let's go to the projects and take a look at all projects. Here we have project 1415 and 16 basically the summary page for it. And then if we go into any particular project, let's go into project number 15 this time. We will then see our activity below. So here's the activity. If we want to see how anything was assigned here, we can hit these three dots and we can go back to the item. This will take us back to the data input form or or edit it. This is the data input form that created this basically edit field that has been added. All right, so then I'm going to close this back out. Now let's go look at our reports related to the project. We're going to go to the accounting dropdown. We're going to go down to the reports. Stroll into the bottom. We're going to be picking up our project reports. We got the detail and summary, the detailed reports, probably where you spend most of your time. Now we have a nice toggle. You'll recall we can toggle between the open reports or the closed reports are just going to pick up all of them at this point. And so that's a good feature to have. I'm going to say update. I'm always going to keep it at the current date so that I have everything up to this point of time. And then I'll change the date with the filter fields. So here's our information 14, 15 and 16. So we have everything here and that's going to add up to the 433,000 433. That's going to be what all of our jobs are, right? If we were to select all of our jobs that are currently open and they're all open right now is the 433,000. That does not tie out to what's currently on the income statement because the income statement is only showing the current jobs for the current period. We had some jobs that had some items that were allocated to it prior to this period. To find that, to be able to make that type of adjustment to look at the beginning balances, we would like to see the dates on this report. So I would typically always have the dates on it. I would memorize this report, which you could do by customizing the report down below. And I would do so with the dates on it. So I set the settings up top. I'm going to add the date to it. So we'll add the date and then say update it. So then we can actually see the date fields down here. And you can actually sort by the dates. So I would probably sort by the dates then, right? And now we have the date information. You could sort by these different, different titles as well, which can be quite useful. So now we can see that 2019, 2020 information. Then if we wanted to sort by 2019 or 2020, we could do, we have more sorting options so we can go to the report settings. And then I'm going to say I want to filter it. I want to filter it now. And I want to filter it by date. So if I want to see everything that's prior to this period in 2019, then I can say I'd like to see everything that's in December 2019, let's say. So January through December or this was 2020. Let's do this again. January, December 2019. And then update that report. And this will give us our beginning balance numbers. And here's our date range right here. So it's not quite right. Hold on a second. Edit that again. I'm going to go to report settings and this end date. I'm trying to get it back to 2019 and they won't let me bring this back to 2019. And there we update it now. And I want to update this report. And so then, again, this date's always the current date, but this is the filtered field. And here's our 2019. That's our beginning balances, which is the 83,000. So if we tie that out to our beginning balances over in our worksheet, that's all the beginning balance of the 83,000. And that can be useful for it to know for our cutoff. And then if I want to see the current time period information, you can remove this filter by just clicking the little X button here. And then going back up top and say I want to go to another filter. And I'm going to add this filter, which is going to be just the items in 2020. So I'll pick up 2020 information and then update that report. And now we're just showing the information in 2020. And if I go to the bottom line here, this 350,000 now should match because it's only showing the activity in the current period. But it's showing the detail of it by project. The 350 here on the income statement, which will also be the 350 here on the equity section of the balance sheet. So that's going to be it for now. Let's get out of here.