Question

What is the purpose of the job cost sheet in a job order costing system?

What is the purpose of the job cost sheet in a job order costing system?

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Answer #1

The job cost sheet is used to maintain the record of each job in a job-order costing system. It also serves as a subsidiary ledger in the job-order costing system. The job cost sheet maintains record of the direct materials, direct labor and overheads assigned to a particular cost.

Job order costing or job costing is a system for assigning and accumulating manufacturing costs of an individual unit of output. The job order costing system is used when the various items produced are sufficiently different from each other and each has a significant cost.

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