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






Your posts are moderated
Related Questions
Bakeson Bearings Ltd is preparing to submit a bid for a bearings order.  Janet Lake,  CEO of the Manufacturing Division, has asked Jason Docker, the management accountant, to prepa

Batch Costing This is a kind of job costing that is utilized when production consists of limited repetitive work and definite number of item manufactured in one batch.  A batc

Costs and Revenue Cost of the development work done in-house to 1 January 2009 has been £1.5m with a further cost of £50,000 per month from now until the software is ready

Lapsol limited manufacture electrical appliances for the export market. The management of the company are considering investing in one of two possible capital expenditure projects.

Stock control and its Level Management must formulate decisions regarding to the control of stock levels along with a view to minimizing the cost of the company whereas achie

The following data relate to three joint products:                                                                               A                 B                     C

Kenner company produces two products: SR200 and TX500. Budged sales for four months are as follows; SR200 TX500 May 8,000 20,000 June 13,000 32,000 July 11,000 39,000 August 18,000

You are the CFO of a Hospital. Suppose that your projected average daily reimbursement is $100, 000 and your average collection day is 40 days. What is your hospital's annual cost

The Zooline Company (Pty) Ltd is an American based company that focuses on the LSM 8 -10 markets. They do vehicle interiors, raise or lower suspensions and install top end sound sy

Allocation of Joint Costs Whereas two or more products of relatively high value emerge simultaneously from a single process, they are named as joint products.  The processes s