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Chapter 6:
Job Cost
6-2
Job Cost

Chapter 6 shows you how to use Peachtree’s
Job Cost System. Peachtree lets you assign Job
ID codes to purchases, sales, and employee
hours. This way, you can track how each of these
factors impacts costs for a specific job.
Purchases
Sales
JOBS
Hours Worked
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-3
Software Objectives, p. 183






Restore data from Exercise 5-2. (This back up
was made on p. 180.)
Learn about Peachtree’s Job Cost system.
Set up a job.
Coordinate job costs with purchases, sales,
and payroll.
Display a Job Profitability Report.
Make two backups: one blank, formatted disk
for Chapter 6; one blank, formatted disk for
Exercise 6-2.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-4
Web Objectives, p. 183

Use your Internet browser to go to the book’s
web site at
www.mhhe.com/business/accounting/yacht2002
Complete the Internet activity for “Business
Encyclopedia.”
 Complete the steps shown for this activity.

McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-5
Peachtree Tip
Jobs can be assigned to purchases of
inventory, sales to customers, and payroll.
The Exercise 6-2 backup file will be used in
Part 4, Chapters 15, 17, and 18. You should
not reformat this disk.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-6
Backing Up Chapter 6
Use one blank, formatted disk to back up Chapter 6 on
pages 193-194. You will need another blank, formatted
disk to back up Exercise 6-2 on page 198. Remember
do not reformat the disk used to back up Exercise 6-2.
You will use this data again in Chapters 15, 17, and 18.
Disks
Backup Name
KB
Page Nos.
12 of 18
A:\Chapter 6
768 KB
193-194
13 of 18
A:\Exercise 6-2
788 KB
198
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-7
Chapter 6 Topics
1.
2.
3.
4.
5.
6.
7.
8.
Software & web objectives, p. 183
Getting started, pp. 184-186
Job Costing and Purchases: Purchasing
Inventory Items for Jobs, pp. 186-188
Job Costing and Sales, pp. 188-190
Job Cost and Payroll, pp. 190-191
Job Cost Reports, pp. 192-193
Backing up Chapter 6 Data, pp. 193-194
Internet Activity, p. 194
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-8
Chapter 6 Topics
9.
Summary and review, 194
a. Going to the net, p. 195
b. Short-answer questions, pp. 195-197
c. Exercise 6-1, p. 197
d. Exercise 6-2, p. 198
e. Chapter 6 index, p. 199
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-9
Completed “Maintain Jobs” window, p. 186

Click on Maintain, then Jobs. Complete steps 4 – 9 on pages
185 and 186.

Save this job, then return to the menu bar.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Completed “Purchases/Receive Inventory”
window, p. 188
6-10

Click on Tasks, then Purchases/Receive Inventory. Complete steps
2 – 8 on page 187.

Click on “Save” to post this purchase. Then, return to the menu bar.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Completed “Sales/Invoicing” window, p. 189

From the “Tasks” pull-down menu, select Sales/Invoicing.
Complete steps 2 – 8 on pages 188 and 189.

Click on “Save” to post this invoice. Then, return to the menu bar.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-11
“Labor Distribution to Jobs” window, p. 190
6-12

Click on “Tasks,” then Payroll Entry. Complete steps 2 – 5 on
page 190. Select “Bob Koehler” as the employee. Type 28 in the
“Date” and “Pay Period” boxes. Select the “Jobs” icon.

Select the “Row” icon, then “Add” to add a distribution line.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-13
Add a job, p. 191

Select the empty job row. Then, with the mouse
pointer on the empty Job row, click the right mouse
button. With your left mouse button, click on
“CUNNINGHAM-01” to highlight it.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Adding a job, p. 191

Type 1 in the “Hours” column. Press <Enter>.

Click on <OK>. Click on “Save” to post the
paycheck. Close the window.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-14
6-15
Job Cost Reports, p. 192

From the Reports pull-down menu, select Jobs. In the “Report
List,” click on “Job Profitability Report.”

Click on on the “Preview” icon. At the “Job Profitability Report
Filter” window, click on OK. Scroll down the screen to Job ID
CUNNINGHAM-01.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-16
Job Profitability Report, p. 193

The “Job Profitability Report” is displayed on
page 193.

Close the windows to return to the menu bar.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-17
Chapter 6, Internet Activity, p. 194
1
Go to the book’s web site at
www.mhhe.com/business/accounting/yacht2002
2
3
4
In the “Student Center” list, link to Internet Activities.
5
Use the Business Encyclopedia web site to look up words related to
accounting.
6
Follow the steps on the book’s web site to complete this Internet activity.
Link to WEB EXERCISES PART 1.
Scroll down the screen to “BUSINESS ENCYCLOPEDIA.” Read steps
1-3.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
6-18
Going to the Net, p. 195

1.
2.
3.
Access the Sage Software web site at
www.peachtree.com. Then, select the link to
“Worldwide.” This takes you to The Sage
Group website.
Is the Sage Group the leading supplies of
accounting software around the world?
How many customers does The Sage Goup
have worldwide?
How do you link to Peachtree Software from
The Sage Group’s website?
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003