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DoD Financial Management RegulationVolume 4, Chapter 20 January 1995CHAPTER 20 JOB ORDER COST ACCOUNTING 2001GENERAL 200101. Purpose. The purpose of a job order cost accounting system is to assign

How to fill out job order cost accounting

1. To fill out a job order cost accounting, you will need to begin by gathering all the relevant costs associated with a specific job or project. This includes direct materials, direct labor, and any other direct costs that can be directly attributed to that particular job.
2. Once you have collected all the necessary costs, you will need to allocate them to the specific job or project. This can be done by creating a job cost sheet or a job cost ledger, where you record the details of each cost item and their corresponding job.
3. For direct materials, you will need to record the quantity, cost per unit, and total cost for each material used in the job. This information can be obtained from purchase orders or inventory records.
4. Direct labor costs should be recorded by tracking the hours worked by each employee on the specific job. This can be done through timesheets or clock-in/clock-out systems. Make sure to multiply the hours worked by the appropriate labor rate to calculate the total labor cost.
5. Additionally, any other direct costs such as subcontractor expenses or equipment rental fees should be included in the job cost accounting. These costs should be documented with receipts or invoices to ensure accuracy.
6. It is important to note that job order cost accounting may also involve allocating indirect costs to specific jobs. These indirect costs, also known as overhead costs, include expenses such as rent, utilities, and administrative salaries. To allocate these costs, you can use predetermined overhead rates based on factors like direct labor hours or machine hours.

Who needs job order cost accounting?

1. Manufacturers who produce customized products or provide customized services often utilize job order cost accounting. This allows them to track the costs associated with each individual job or project, providing valuable information for pricing, bidding, and overall cost control.
2. Construction companies also commonly use job order cost accounting to track the costs of each construction project. This helps them accurately estimate and manage project budgets, as well as determine the profitability of each individual job.
3. Additionally, service-based industries, such as consulting firms or software development companies, may benefit from job order cost accounting. By tracking the costs associated with specific client projects or service engagements, they can ensure accurate billing and profitability analysis.

In conclusion, filling out job order cost accounting involves collecting and allocating the costs associated with a specific job or project. This accounting method is commonly used by manufacturers, construction companies, and service-based industries to accurately track costs, estimate budgets, and determine profitability.

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What is job order cost accounting?

Job order cost accounting is a method of costing in which costs are assigned to specific jobs or orders.

Who is required to file job order cost accounting?

Manufacturing companies and other businesses that produce goods in batches or orders are required to file job order cost accounting.

How to fill out job order cost accounting?

Job order cost accounting is filled out by tracking all direct and indirect costs related to a specific job or order.

What is the purpose of job order cost accounting?

The purpose of job order cost accounting is to determine the cost of each job or order accurately and make informed decisions about pricing and resource allocation.

What information must be reported on job order cost accounting?

Job order cost accounting must report direct materials, direct labor, and overhead costs associated with a specific job or order.