Job Cost Accounting Journal Entries

The job cost accounting journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of job costing.

The journal entries follow the job costing process from purchase of raw materials, allocation of direct materials, direct labor, and manufacturing overhead to work in process, transfer of the goods through to finished goods and finally to cost of goods sold and sales.

In each case the job cost accounting journal entries show the debit and credit account together with a brief narrative. For a fuller explanation of journal entries, view our examples section.

Typical Job Cost Accounting Journal Entries


To purchase raw materials
Account Debit Credit
Raw materials inventory XXX
Accounts payable XXX

Accrue and part pay manufacturing overhead
Account Debit Credit
Manufacturing overhead (eg rent) XXX
Accounts payable XXX
Cash XXX

To transfer direct materials, direct labor, and manufacturing overhead (at the predetermined rate) to work in process
Account Debit Credit
Work in process inventory XXX
Raw materials inventory XXX
Direct labor wages XXX
Manufacturing overhead XXX

To transfer work in process to finished goods
Account Debit Credit
Finished goods inventory XXX
Work in process inventory XXX

To transfer finished goods to cost of goods sold
Account Debit Credit
Cost of goods sold XXX
Finished goods XXX

To record the sale of the goods
Account Debit Credit
Accounts receivable XXX
Sales XXX

To transfer actual manufacturing overhead to manufacturing overhead account
Account Debit Credit
Manufacturing overhead XXX
Indirect materials XXX
Indirect labor wages XXX
Depreciation XXX
Utilities XXX
Other costs XXX

Job Cost Accounting Journal Entries November 6th, 2016Team

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