Job cost sheet

Definition

A job cost sheet is a document that records and accumulates all the costs assigned to a specific job in job order costing. It includes direct materials, direct labor, and manufacturing overhead costs.

5 Must Know Facts For Your Next Test

1. The job cost sheet is essential for tracking the profitability of individual jobs.
2. It helps in assigning costs accurately to each specific job, aiding in precise cost management.
3. Direct materials and direct labor are traced directly to the job cost sheet, while manufacturing overhead is allocated based on a predetermined rate.
4. Job cost sheets are used to generate financial reports and assist in pricing decisions.
5. Inaccurate entries on the job cost sheet can lead to miscosting and affect overall financial statements.

Review Questions

• What main components are recorded on a job cost sheet?
• How does a job cost sheet assist in pricing decisions?
• Why is it important to have accurate entries on a job cost sheet?

Related terms

Direct Materials: Raw materials that can be directly traced to the production of a specific product.

Manufacturing Overhead: Indirect production costs that cannot be traced directly to specific jobs and are allocated using a predetermined rate.

Job Order Costing: A costing method used when products are made based on specific customer orders, where costs are tracked by individual jobs.