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JOB ORDER COST ACCOUNTINGTRUEFALSE STATEMENTS1. Cost accounting is primarily concerned with accumulating information about product costs.2. A job order cost system is most appropriate when a large
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How to fill out job order cost accounting

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How to fill out job order cost accounting

01
Collect all relevant cost data for the specific job order.
02
Determine direct materials costs by tracking the materials used in the production process.
03
Calculate direct labor costs by tracking the labor hours spent on the job order.
04
Allocate indirect costs to the job order based on a predetermined allocation method.
05
Summarize all costs associated with the job order to calculate the total job order cost.

Who needs job order cost accounting?

01
Manufacturing companies that produce goods on a per-order basis
02
Construction companies that work on specific projects
03
Customized service providers that offer tailor-made solutions

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Job order cost accounting is a cost accounting system that assigns costs to specific production batches or jobs, allowing businesses to track expenses related to each job or project individually.
Businesses that manufacture products on a job order basis or provide customized services, typically in industries such as construction, manufacturing, and engineering, are required to implement job order cost accounting.
To fill out job order cost accounting, you need to gather all relevant costs associated with a job, such as materials, labor, and overhead, and record them on a job cost sheet, which details each component of the costs incurred during the job.
The purpose of job order cost accounting is to provide detailed insights into the costs associated with individual jobs, enabling businesses to make informed pricing, budgeting, and financial management decisions.
Job order cost accounting must report information such as direct materials used, direct labor hours, applied overhead, total job cost, and estimated versus actual costs.
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