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CHAPTER 4
JOB COSTING41Define cost pool, cost tracing, cost allocation, and cost allocation base.
Cost pool grouping of individual indirect cost items.
Cost tracing the assigning of direct costs to
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01
To fill out chapter 4 job costing, follow the steps below:
1. Collect all the relevant job cost data including direct materials, direct labor, and manufacturing overhead.
02
Determine the total cost incurred for each job by adding up the direct materials, direct labor, and manufacturing overhead.
03
Assign the job costs to the appropriate job cost categories such as direct materials, direct labor, and manufacturing overhead.
04
Calculate the unit cost by dividing the total job cost by the number of units produced.
05
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Review and verify the accuracy of the calculations and data entered.
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Chapter 4 job costing is needed by businesses and organizations that want to accurately track and allocate costs to specific jobs or projects. This is particularly important for industries such as construction, manufacturing, and service providers where job costs can vary significantly. Job costing helps in determining the profitability of each job, making pricing decisions, and evaluating performance.
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