characteristics of job

> Using a normal costing; cost of job determined

when the job completed.
> Cost information; management can decide on
pricing of product
> Direct materials and Direct labour; can trace
by job and involved directly in the making of the
product.
> Applied manufacturing overhead; based on a
predetermined overhead rate (POR)

determination of
cost per job
Job order costing
> Cost are assigned to each job or to each
batch of product to fulfill customer’s
JOB ORDER JOB COST SHEET
SOURCE DOCUMENT

> Materials Requisition Form/Slip

must be filled to request the materials from

COSTING
specifications.
> Each job has its own distinguishing > A report/form used to record once store
the production process has been > Time Ticket
characteristcs. recor d the hours the worker has
completed used to
> Examples ; wedding invitation cards, custom worked
furniture, custom t-shirt & birthday cake

cost flow in a manufacturing

cost in a job order cost sysytem
setting for production
> Illustration shows the recording
of cost in a job.
example of material requisition form
example of time ticket
job cost sheet
 QUESTION
1. Give an example of job order
costing except on slide given?
2. What are the 3 component to
calculate the cost per job?

3. What is the objective of job

order costing? 4. What kind of documentation
that used in job order costing?

5. What is time ticket?

THANK
YOU!!!