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CA Intermediate · Cost and Management Accounting · Job Costing

Which of the following best describes a job cost sheet in a job costing system?

A job cost sheet is the record opened for each individual job that accumulates its direct materials, direct labour, direct expenses and the overheads absorbed by it. It lets management ascertain the cost and profit of that particular job separately from other jobs.

  1. AA statement that records the direct materials, direct labour, direct expenses and absorbed overheads for one specific jobCorrect
  2. BA summary of total production cost of all jobs for the whole year
  3. CA statement of standard cost per unit for a continuous process
  4. DA record of only the selling price quoted to the customer for a job

Explanation

A job cost sheet is opened for each job and accumulates its direct costs and absorbed overheads, so cost and profit can be found job by job. The year-wide summary is not a job cost sheet, and process standards or quotations are not its purpose.

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