COST ACCOUNTING
JOB ORDER COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Direct materials, applied overhead, administrative costs.
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Direct materials, direct labour, applied overhead.
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Direct labour, actual overhead, selling costs.
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Direct materials, direct labour, operating costs.
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Detailed explanation-1: -Job cost sheets record the material, labor, and overhead costs for each job, whereas journal entries actually transfer the costs into the work in process inventory, the finished goods inventory, and cost of goods sold.
Detailed explanation-2: -It’s a record of the costs incurred for a single job. A job cost sheet usually includes the customer name, address, job number, job description, date started, date completed, and estimated completion date. The costs for the job are recorded on the sheet during the production process.
Detailed explanation-3: -Job costing, also called project-based accounting, is the process of tracking costs and revenue for each individual project. Job costing looks at each project in detail, breaking down the costs of labor, materials and overhead.
Detailed explanation-4: -The three cost categories appearing on a job cost sheet are: selling expense, manufacturing expense, and administrative expense. 3. Under a job-order cost system the Work in Process account is debited with the cost of materials purchased.