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Chapter 20Job Order CostingPROBLEMS: SET B
P201B Median Company uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 2014, Job No. 25 was
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How to fill out job order costing system
How to fill out job order costing system
01
Identify all the direct and indirect costs associated with the job
02
Classify the costs into different categories such as direct materials, direct labor, and overhead
03
Allocate the direct costs to the specific job
04
Allocate the indirect costs based on a predetermined allocation method (e.g., allocation based on direct labor hours or machine hours)
05
Calculate the total cost of the job by summing up all the allocated costs
06
Determine the selling price for the job by adding a desired profit margin to the total cost
07
Record the job cost information in the job order costing system for future reference
Who needs job order costing system?
01
Manufacturing companies that produce customized or unique products
02
Service companies that provide customized services
03
Construction companies that work on specific projects
04
Companies that perform job-based or project-based work
05
Companies that want to accurately track costs for each individual job or project
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What is job order costing system?
Job order costing system is a cost accounting method used to determine the cost of manufacturing each individual product or service.
Who is required to file job order costing system?
Manufacturing companies or companies that produce customized products or services are required to use job order costing system.
How to fill out job order costing system?
To fill out job order costing system, one needs to track direct materials, direct labor, and overhead costs for each job and allocate these costs accordingly.
What is the purpose of job order costing system?
The purpose of job order costing system is to accurately determine the cost of each job or product, which helps in setting prices and making business decisions.
What information must be reported on job order costing system?
Information such as direct materials used, direct labor hours worked, overhead costs incurred, and total cost per job must be reported on job order costing system.
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