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

To accrued labor cost
Account Debit Credit
Labor cost XXX
Wages payable XXX

To transfer indirect materials, indirect labor and other overhead to manufacturing overhead account
Account Debit Credit
Manufacturing overhead XXX
Raw materials (indirect) XXX
Labor cost (indirect) XXX
Depreciation XXX
Utilities XXX
Other costs 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 cost 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

Last modified April 10th, 2019 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.

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