Question

Learning Objective 15-C2: Explain job cost sheets and how they are used in job order costing. Skip to question In a job order costing system, the costs of producing each job are accumulated on a separate job cost sheet. Costs of direct materials, direct labor, and overhead applied are accumulated separately on the job cost sheet and then added to determine the total cost of a job. Job cost sheets for jobs in process, finished jobs, and jobs sold make up subsidiary records controlled by general ledger accounts.

Answer 1

Answer:

Job Cost Sheets:

In a job order costing system, the costs of producing each job are accumulated on a separate job cost sheet.

Explanation:

A job cost sheet is used in a job order costing system to record all manufacturing costs related to each job. The costs that are recorded in the job cost sheet include direct material, direct labor, and manufacturing overhead costs.  Since these job costs are traceable to their respective jobs, the actual direct material and labor costs are used.