What is a Job Order Cost Sheet?

Job Order Cost Sheet

Share This...

Job Order Cost Sheet

A job order cost sheet is a document used in job order costing system to record all the costs incurred on a specific job. It includes direct materials, direct labor, and overhead costs, and is used to track the total cost associated with a particular job order.

The job order cost sheet usually provides the following information:

  • Job Order Number or Identifier: A unique code or identifier for each job to distinguish it from other jobs.
  • Customer Information: Details about the customer or client for whom the job is being performed.
  • Job Description: A brief description of the job or project.
  • Direct Material Costs: Costs of all raw materials that are directly involved in the manufacturing process.
  • Direct Labor Costs: Costs of labor directly involved in the manufacturing or creation of the product.
  • Overhead Costs: Indirect costs that cannot be specifically attributed to a job but are proportionately allocated based on some predetermined overhead rate (like machine hours, labor hours etc.)
  • Total Costs: The sum of all the above costs, giving the total cost of the job.
  • Status of the Job: Information about whether the job is still in progress or has been completed.

This cost sheet is very important in job order costing system as it helps to understand how costs are distributed across different jobs, assists in pricing decisions, and helps to track and control costs associated with specific jobs.

Example of a Job Order Cost Sheet

Here’s an example of how a Job Order Cost Sheet might look:

Job Order Cost Sheet

Job Order No.: 00123
Customer: XYZ Corporation
Job Description: Production of 1000 units of Product Y

Cost ElementsAmount (USD)
Direct Materials4000
Direct Labor3000
Total Cost10000

Job Status: In Progress

In this example, the job order cost sheet provides a breakdown of costs for a specific job. This includes direct materials ($4000), direct labor ($3000), and overhead costs ($3000), resulting in a total cost of $10000. This document can then be used for internal cost control, pricing decisions, and financial reporting. It’s also worth noting that the overhead rate was likely calculated based on a predetermined overhead rate (such as per labor or machine hour) that’s relevant to the specific business.

Other Posts You'll Like...

Want to Pass as Fast as Possible?

(and avoid failing sections?)

Watch one of our free "Study Hacks" trainings for a free walkthrough of the SuperfastCPA study methods that have helped so many candidates pass their sections faster and avoid failing scores...