CA Intermediate · Cost and Management Accounting · Job Costing
In a job costing system, a firm quotes prices to customers by adding a fixed percentage margin on the total cost of each job. Which document is the primary record on which the costs of materials, labour and overheads for one particular job are accumulated?
The job cost sheet is the primary record for a job. It is opened for each job and accumulates direct materials, direct labour, direct expenses and absorbed overheads, so total cost and profit can be found. Other documents serve narrower purposes.
- AJob cost sheetCorrect
- BBill of materials
- CStores ledger account
- DMuster roll
Explanation
The job cost sheet is opened for each job and accumulates direct material, direct labour, direct expenses and absorbed overheads for that job. A bill of materials only lists required materials, a stores ledger tracks stock by item, and a muster roll records attendance.
Did you get it right without looking?
One question tells you little. A timed set on Job Costing shows your real accuracy, how long you take and where you lose marks.
More Job Costing questions
- Mehta Engineers quotes prices at cost plus 25% profit on selling price. The cost of Job 31 is estimated at Rs 1,80,000. What quotation price…
- Sharma Fabricators uses a machine-hour overhead rate. Budgeted factory overheads for the year are Rs 7,20,000 and budgeted machine hours are…
- Verma Engineering completed Job K-9 with total cost of ₹2,40,000, including factory overheads absorbed at a predetermined rate of ₹40 per ma…
- Sharma Fabricators worked on Job J-21. Direct materials were Rs 48,000 and direct wages Rs 30,000 (1,500 labour hours at Rs 20 per hour). Fa…
- Surya Printers uses a predetermined overhead rate based on machine hours. Budgeted overheads were Rs 9,60,000 for 12,000 machine hours. Actu…
- Anand Interiors completed a job with a cost of Rs 1,20,000. During production, abnormal spoilage specific to a customer's special instructio…