The application of job order costing methods in determining cost of production on exhaust smes in purbalingga (case study on exhaust smes trd racing design)

The development of Micro, Small, and Medium Enterprises (SMEs) in various countries including Indonesia are rising rapidly.Cost of production is one of the factors that affect the determination of the basic selling price of a product. In addition, the cost is also used to determine the amount of profits derived by an enterprise. This research used a qualitative approach, using a case study on the exhaustsmes TRD Racing Design that produces motorcycle and car exhaust. This research aims to determine the calculation of production costs on the exhaust smes TRD Racing Design, because this smes still not apply the method of calculating production cost based on accounting for each order. This research process is done by collecting data used interview and observation, then calculate and compare the concept of production cost calculation which is used by smesmethod with the calculation of job order costing method. This research focuses on exhaust orders received in July 2017 with two kinds of exhaust products that isyoshimura exhaust and akrapovic exhaust. Calculation shows that the determination of the cost of production with job order costing method, when compared with the cost of production is calculated by the method of exhaust smes TRD Racing Design gives different results is greater use of job order costing method. This is because the calculation performed by smes is not accordance with accounting method in classifying and factory overhead charge to each product. It can be concluded that the calculation of the cost of production using the full costing method provides more accurate results than the traditional method of calculation or interpretation.The difference will affect the profit obtained by the company because the company will gain a profit of 0.27% for yoshimura exhaust products and 0.19% for yoshimura exhaust products. If look at the results of the calculation of profits the company obtains a small profit so that the need for an evaluation to determine the selling price for the company can obtain maximum profit