Job Cost Sheet
A job cost sheet is a document used in job costing to record all the costs associated with a particular job. It is part of the job order cost system which records the costs by specific job orders. This method is primarily used when products or services are unique, such as in custom orders or projects, and when costs associated with individual jobs need to be tracked separately.
A job cost sheet typically includes the following information:
- Job Identifier: This could be a unique job number, code, or the name of the job. This is used to track and identify the specific job.
- Job Description: A brief description of the job or project.
- Date of Commencement and Completion: The start and finish dates of the job.
The costs associated with the job are categorized as follows:
- Direct Material Costs: This includes the cost of all materials that are directly used in the job. These are often materials that become an integral part of the finished product.
- Direct Labor Costs: This includes the wages of all employees who work directly on the specific job.
- Manufacturing Overhead Costs: These are indirect costs associated with the job, such as depreciation, utilities, or maintenance. These costs are usually allocated to the job using a predetermined overhead rate.
A job cost sheet helps in keeping track of the total cost incurred for a particular job, aiding in pricing decisions, cost control, and financial reporting. It provides a detailed breakdown of costs which is critical for managers in analyzing the profitability of individual jobs, and making informed decisions about bidding on future projects, and planning and budgeting.
Example of a Job Cost Sheet
Let’s consider a hypothetical example of a job cost sheet for a custom furniture manufacturer that is producing a custom dining room set for a client.
Job Identifier: Job #2023-7B
Job Description: Custom dining room set (1 table, 6 chairs)
Date of Commencement: July 1, 2023
Estimated Completion Date: July 30, 2023
Direct Materials:
- Quality Hardwood: $1,000
- Screws and hardware: $50
- Finish and paint: $100
- Fabric for chair padding: $200
- Total Direct Materials: $1,350
Direct Labor:
- Carpenter hours (50 hours @ $20/hour): $1,000
- Finisher hours (20 hours @ $18/hour): $360
- Upholsterer hours (15 hours @ $20/hour): $300
- Total Direct Labor: $1,660
Manufacturing Overhead (applied at a predetermined rate, let’s assume it’s 50% of direct labor):
- Overhead Costs (50% of $1,660): $830
Total Job Cost:
Total Direct Materials + Total Direct Labor + Manufacturing Overhead Costs = $1,350 + $1,660 + $830 = $3,840
This job cost sheet provides a detailed breakdown of the costs associated with Job #2023-7B. The furniture manufacturer can use this information for multiple purposes, such as pricing the dining room set, determining whether the job was profitable, planning and budgeting for future jobs, and more. This is a simplified example and actual job cost sheets may contain more categories and more detailed information.
