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CA Intermediate · Cost and Management Accounting · Job Costing

In job costing, which document is normally used to accumulate the material, labour and overhead costs of a specific job and serves as the basis for determining its total cost?

The job cost sheet is the document used to accumulate all costs of a particular job. It records direct material, direct labour, direct expenses and absorbed overheads for that job, so total cost and profit can be found. Bin cards, GRNs and gate passes do not do this.

  1. ABin card
  2. BJob cost sheetCorrect
  3. CGoods received note
  4. DGate pass

Explanation

A job cost sheet is opened for each job and records direct material, direct labour, direct expenses and absorbed overheads for that job. A bin card only records stores quantity movements. A goods received note records receipt of materials, and a gate pass authorises movement of goods out of premises.

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