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Chapter 3JobOrder Costing: Cost Flows and External ReportingQuestions 31 The link that connects these two schedules is the cost of goods manufactured. It is calculated within a schedule of cost of
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How to fill out job-order costing cost flows

01
Step 1: Identify all the direct materials used in the production of the job
02
Step 2: Calculate the total cost of direct materials used by adding up the cost of each material
03
Step 3: Identify all the direct labor used in the production of the job
04
Step 4: Calculate the total cost of direct labor used by adding up the cost of each labor
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Step 5: Determine the manufacturing overhead costs associated with the job
06
Step 6: Allocate the manufacturing overhead costs to the job using an appropriate cost driver or allocation base
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Step 7: Calculate the total cost of the job by adding up the direct materials, direct labor, and allocated manufacturing overhead costs
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Step 8: Record the job order cost flows in the accounting books or software

Who needs job-order costing cost flows?

01
Companies that engage in custom manufacturing or production of unique products often require job-order costing cost flows.
02
Industries like construction, engineering, and printing typically utilize job-order costing cost flows.
03
Any business that needs to track the specific costs associated with each job or order may need job-order costing cost flows.
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Job-order costing cost flows track the costs associated with specific job orders from start to finish, including direct materials, direct labor, and manufacturing overhead.
Manufacturing companies that produce customized products or services are required to file job-order costing cost flows.
Job-order costing cost flows can be filled out by recording the direct materials, direct labor, and manufacturing overhead costs for each specific job order.
The purpose of job-order costing cost flows is to accurately allocate costs to each job order and determine the profitability of each project.
Job-order costing cost flows must report the direct materials, direct labor, and manufacturing overhead costs incurred for each job order.
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