Job order costing is an approach to costing that estimates costs for specific customer orders because the orders vary from customer to customer. At an extreme, each product or service may be unique.
Typical settings adopting this approach are professional services, Large-scale projects (Construction, research and development etc.) or luxury apparel Characterized by small batches of highly customized units, And by extension any taylormade, Customized our personalized products or services.Each job is distinct and identifiable as well as Unique andhighly different from Any other job.Jobs typically differ in terms of duration, complexity and resources used.
Job-order costing is a process that estimates the costs of manufacturing products for different jobs required for specific customers’ orders. By extension, it is a cost system in which costs are assigned to specific jobs, ti distinct units, batches or lots of products or services.
Job order costing is a method of allocating costs to products that are readily identified by individual units all batches, each of which requires varying degrees of attention and skills.
Job cost sheet is a document used to recalled all of the costs of producing a particular job or servicing a specific customer.
Materials requisition form is document used to authorize the issuance of materials into production. It details the costs and quantities of all materials needed to complete specific jobs.
Material requisition form Is a document that specifies the type and quantity of materials to be drawn from the storeroom and identifies the job that would be charged for the cost of the materials.
Bill of materials is a document that lists the type and quantity of each type of direct material needed to complete a unit of product.
Time ticket is a document used to track how much time a worker spent on a job. Is an hour by hour summary of the employee’s activities throughout the day.
A job-cost sheet of job cost record is a document that records and accumulates all the costs assigned to a specific job. Is a form prepared for job that record the materials, labor, and manufacturing overhead costs charged to the job.
Progression of completion.