97 – IMK
CHAPTER 6
JOB COST
In Chapter 6, Sage 50‘s Job Cost system is taught. Sage lets your
students assign Job ID codes to purchases, sales, and employee hours.
Your students will understand how each of these factors—purchases,
sales, and employee hours—impact costs for a specific job.
The diagram that follows illustrates how job costing works with purchases,
sales, and payroll.
LEARNING OBJECTIVES
1. Restore data from Exercise 5-2. (This backup was made on textbook
2. Learn about Sage 50’s Job Cost system.
4. Coordinate job costs with purchases, sales, and payroll.
5. Display the Job Profitability Report.
6. Make two backups, save one Excel file, and save one PDF file.
Purchases
Sales
Hours Worked
JOBS
98 – IMK Chapter 6
SAGE 50 TIPS, CHAPTER 6:
➢ Jobs can be assigned to purchases of inventory, sales to customers,
and payroll.
➢ The diagram below shows how Sage 50 organizes job costing. (Refer
to textbook page 192.)
1) Setup 2) Tasks
3) Reporting
(Part 4 of the textbook).
LECTURE OUTLINE FOR CHAPTER 6
A. Learning Objectives, page 191
B. Getting Started, pages 193-194
D. Job Costing and Sales, pages 196-197
E. Job Cost and Payroll, pages 198-199
Job Cost 99 – IMK
G. Backing Up Chapter 6 Data, page 200
H. Online Learning Center, pages 200-201
Complete the following end–of-chapter activities online at
2. Going to the Net exercise: Access the Sage website.
4. Assessment Rubric: Review journals, navigation centers, modules,
and task windows.
5. Listen to narrated PowerPoint slides.
The OLC also includes links to the Appendixes:
• Appendix A: Troubleshooting (textbook and OLC)
• Appendix C: Review of Accounting Principles (OLC Student
Edition)
• Appendix D: Glossary of Terms (OLC Student Edition)
I. Exercise 6-1, pages 201-202
100 – IMK Chapter 6
SOLUTION TO EXERCISE 6-1 (3)
Job Cost 101 – IMK
SOLUTION TO EXERCISE 6-1 (3)
102 – IMK Chapter 6
SOLUTION TO EXERCISE 6-2 (1): The PDF file is used for the report.
Job Cost 103 – IMK
SOLUTION TO EXERCISE 6-2 (1) (Continued)
104 – IMK Chapter 6
SOLUTION TO 6-2 (1) (Concluded)
Job Cost 105 – IMK
ANSWERS TO GOING TO THE NET
Access the Sage 50cloud accounting website. The website address is
https://www.sage.com/en-us/products/sage-50-accounting/.
1. Briefly describe Sage 50cloud accounting software.
2. What are two benefits of Sage 50cloud accounting software?
Run your business more efficiently with a time-saving, in-depth solution
Delivers built-in accounting best practices to keep your business
finances on track and help you stay compliant with taxes and reporting
requirements.
Keeps your finances safe and secure with screen-level user access
and bank-level online protection. You have peace of mind knowing
your critical info is safe from prying eyes.
106 – IMK Chapter 6
ANSWERS TO SHORT-ANSWER QUESTIONS, QA TEMPLATES
1. Draw the diagram that shows how the job cost system works with
purchases, sales, and payroll.
The diagram that follows illustrates how job costing works with
purchases, sales, and payroll.
2. What is the description of the Franklin Botanical Gardens job?
3. What is the customer ID for Franklin Botanical Gardens?
4. How much does Franklin Botanical Gardens owe for the one Bell-Grow
Home Irrigation System (include the sales tax)?
5. What is the GL account (name and number) for the purchase of the
wood treatment?
6. What is the name of the report that tells you about Bellwether’s jobs?
Purchases
Sales
Hours Worked
7. When inventory items are purchased for jobs, what do you need to do?
When inventory items are purchased for jobs, you need to do the
following:
a. Record the purchase directly as a job expense. You could indicate
a Non-stock or a Description only Inventory Item but not a Stock
8. How many hour(s) did Alex C. Kornel work on the Franklin Botanical
Gardens job?
9. Summarize the advantage to using Sage 50’s job costing feature.
10. What does the Job Profitability report show?
ANALYSIS QUESTION
Explain the interrelationship of jobs, purchases, sales and payroll.
ANSWER:
In Sage 50, you can assign Job ID codes to purchases, sales, and
employee hours. In this way, Sage 50 tracks how each of these factors
108 – IMK Chapter 6
ASSESSMENT RUBRIC
Students complete the Assessment Rubric online at
www.mhhe.com/yacht2019 > Student Edition > select Chapter 6 >
Assessment Rubric link. To review Sage 50’s journals, navigation centers,
modules, and task windows, students complete the blank fields.
Date
Transaction
Navigation
Center/Module
Journal
Dr./Cr.
3/26/19
Sold two Bell-Grow
Impulse Sprinklers
(EQWT-15160) to
Franklin Botanical
Gardens, $64.18
(includes sales tax);
terms 2% 10, Net
30 days; Job ID
Franklin Botanical
Gardens.
Customers &
Sales > Sales
Invoice > New
Sales Invoice
Accounts
Receivable
Sales Journal
Dr. 11000 Accounts
Receivable/Franklin
Botanical Gardens,
$64.18
Dr. 50000-EQ
Product Cost-
Equipment, $23.90
Cr. 23100 Sales
Tax Payable, $4.20
Cr. 40000-EQ
Sales-Equipment,
$59.98
Cr. 12000 Inventory,
$23.90
3/26/19
Invoice No. AD967
was received from
Adler’s
Landscaping for the
purchase of special
wood treatment,
$85; terms 2% 10,
Net 30 Days. Apply
this purchase to the
Franklin Botanical
Gardens jobs.
Vendors &
Purchases >
Enter Bills > New
Bill
Accounts
Payable
Purchases Journal
Dr. 57200 Materials
Cost, $85
Cr. 20000 Accounts
Payable/Adler’s
Landscaping, $85
Purchases
Sales
Hours Worked
JOBS
Job Cost 109 – IMK
McGraw-Hill Education, Computer Accounting with Sage 50 2019, 21e
3/29/19
Amanda W.
Chester worked one
hour on the Franklin
Botanical Gardens
job. Apply her
paycheck to this
job.
Employees &
Payroll > Pay
Employee >
Enter Payroll for
one employee
Payroll
Payroll Journal
Dr. 77500 Wages
Expense, $1,120
Dr. 72000, Payroll
Tax Expense,
129.14
Cr. 23400 Federal
Payroll Taxes,
$325.91
Cr. 23600 State
Payroll Taxes
Payable, $45.67
Cr. 23300 401 K
Deductions
Payable, $44.80
Cr. 10300 Payroll
Checking Account,
$832.76
The Payroll Journal was displayed to calculate Ms. Chester’s paycheck
information. Amounts within the same numbered account are added
together.
SOLUTION FILES
110 – IMK Chapter 6
The chart shows the size of the Chapter 6 solution files (Sage 50 backups,
Excel reports and Adobe PDF exercise files). Remind students to keep
their Exercise 6-2.ptb file. It will be used again in Chapters 16, 17, and 18
(Part 4 of the textbook).
Chapter
Sage 50 Backup (.ptb)
Excel (.xlsx) and Adobe (.pdf)
Kilobytes1
Page
Nos.
6
Chapter 6.ptb
3,620 KB
200
Exercise 6-2.ptb*
3,620 KB
202
Exercise 6-2_Job Profitability Report.xlsx
17 KB
202
Exercise 6-2_Job Profitability Report.pdf
26 KB
202
*The Exercise 6-2.ptb backup file is used in Part 4, Chapters 16, 17, and
18.
1