BUS 108 Lecture Notes - Lecture 5: Timesheet
Document Summary
Job-order costing: job-order costing an overview. Job-order costing system is used when different types of products, jobs, or batches are produced within a period. Examples of industries in which job-order costing is used include shipbuilding, construction, hospitals, special order printing, law firms, cpa firms, and movie studios: basic cost elements. In a job-order costing system, direct material costs and direct labor costs are traced directly to each job. Factory overhead is applied to jobs using a predetermined application rate. Actual overhead costs are not traced to jobs. But, they are compared to the total overhead costs applied to jobs in a period to determine the amount of under- or over-applied overhead costs for the period: job cost sheet. Each job has a job cost sheet on which costs are charged to the job. The job cost sheet has some descriptive data to identify the particular job and contains spaces to record costs of materials, labor, and overhead.
