Features and procedures of job costing, Cost Accounting

Features and Procedures of Job costing

Features of Job costing

Product is against the customer's order and not on job stocks. Every job has its own characteristics and needs special skills and attention.

Procedures of Job Costing

The application of job costing method begins when a customer's order is obtained. After accepting an order, an individual work or job order number is assigned to every job for or separate order identification. Production order is then made giving authority for the job to start.  A job cost account for each job is then opened. In this account, all costs concerning to that particular job are recorded and this account closed merely when the job is complete. After completion of the job, an invoice is prepared or ready and served to the customer.

  1. Materials for each job are made utilizing material requisition forms
  2. Labour is charged on the basis of the amount of time employed to complete that particular job like recorded in time-keeping records.
  3. Overheads are charged on the origin of a predetermined overhead absorption rate.

"Applied Overhead absorption rate is = Budgeted Overheads ÷ Denominator value"

The Denominator value where the denominator value refers to units of several specified overhead absorption base as illustrated machine hours and direct labour hours also.

Posted Date: 2/7/2013 2:02:34 AM | Location : United States

Related Discussions:- Features and procedures of job costing, Assignment Help, Ask Question on Features and procedures of job costing, Get Answer, Expert's Help, Features and procedures of job costing Discussions

Write discussion on Features and procedures of job costing
Your posts are moderated
Related Questions

Smith Corporation purchased an intangible asset for $110,000. Compute the second year's tax amortization. The second year would be a full year's amortization. The company estimates

Expenses paid in previous of their use or consumption is termed as prepaid expenses. At the ending of the year, a portion of the payment keeps unconsumed and is treated like an ass

Special order pricing - Shorewood Shoes Company makes and sells a variety of leather shoes for children. For its current mix of different models and seizes, the average selling pri

Activity Based Costing or ABC Absorption costing shows to be relatively straightforward way of adding overhead costs to units of production utilizing, more often than not, a v

Logan Corporation issued $800,000 of 8% bonds on October 1, 2006, due on October 1, 2011. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to y

Calculate Remuneration of Employee of an Organisation Based on the data underneath that you are necessary to calculate the remuneration of all employee like determined with ea

What are the importance of cost classification

EFFECTIVENESS AUDITING is one type of internal audit. Describe and evaluate this type of internal audit. What types of organisation would it be most useful for? Required: 1)

SD manufactures and sells a small range of timber based  products. The main differences b/w the products are their size and the type of timber they used. SD prepares annual budgets