CMA Intermediate · Cost Accounting · Job Costing
In a job costing system, which document is normally prepared first for each job and is used to accumulate the material, labour and overhead costs charged to that job?
A job cost sheet opened against the production order is prepared first. It collects the materials, labour and overhead cost of each job from the time work is authorised, so the cost and profit of every job can be found once it is completed.
- AJob cost sheet opened against the production orderCorrect
- BBill of materials returned after completion
- CGoods received note for the finished job
- DCost reconciliation statement
Explanation
On receipt of a customer order, a production order is issued and a job cost sheet is opened for that job. All material requisitions, labour time records and overhead absorbed are posted to it. The other documents do not accumulate job costs.
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
- In job costing, the cost of normal spoilage that arises because of the specific requirements of a particular job is generally treated as:
- Job X at Ganga Printers took 300 labour hours in the press shop. The shop's budgeted overheads are ₹2,40,000 for 4,000 budgeted labour hours…
- Job 9 at Sundaram Works was charged materials of ₹50,000, of which materials worth ₹4,000 were returned to stores, and wages of ₹30,000. Mat…
- Job 17 of Narmada Fabricators has a total cost of ₹90,000. The firm quotes a price that gives a profit of 20% on the selling price. What is …
- Which industry is the LEAST suitable for the application of job costing?
- Job No. 41 of Kaveri Engineers used direct materials of ₹24,000 and direct wages of ₹16,000. Factory overhead is absorbed at 150% of direct …