Cost of Production Price Analysis Using Job Order Costing Method In CV. Alam Lestari Jaya

Abstract

Cost of production is the cost of production absorbed into each unit of product produced by the company. Calculation of order costs is a method for determining the cost of production of a company's products according to consumer orders. CV. Alam Lestari Jaya is a company engaged in the field of convection and processing of clothing materials into ready-made clothes for various purposes. The purpose of this research is to find out how to CV. Alam Lestari Jaya determines the cost of production and compares it with the job order costing method. This research uses experimental methods, quantitative descriptive data analysis, and observation. The result is that CV Alam Lestari Jaya can apply the job order costing method to calculate the cost of production. As a result, the difference in cost of goods manufactured, which shows lower costs than using the job order costing method. There is a difference in the selling price of Rp 2.817, according to the company and the calculated job order costing. Besides, this study did not calculate all factory overhead costs because the company did not allocate a budget for factory overhead costs. This causes factory overhead costs not to be fully calculated, such as electrical loads and depreciation loads for sewing machines. The final results obtained in this study are in accordance with the expected criteria.