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CA Intermediate · Cost and Management Accounting · Job Costing

In job costing, which document is used to accumulate the costs of materials, labour and overheads for one specific customer order, and is later used to determine the profit or loss on that job?

The job cost sheet is the document used. It is opened for each job and accumulates direct materials, direct labour, direct expenses and absorbed overheads, so the total cost, and the profit or loss on that job, can be determined once the job is completed.

  1. ABill of materials
  2. BJob cost sheetCorrect
  3. CMaterial requisition note
  4. DGoods received note

Explanation

A job cost sheet is opened for each job and records direct materials, direct labour, direct expenses and absorbed overheads. A bill of materials only lists the materials needed, and a requisition note records a single issue of materials. A goods received note records receipt of purchased goods.

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