Chapter 15, Problem 3DQ

To determine

Job Cost Sheet

Job cost sheet is an important document used in accounting in order to identify all the cost that has been incurred to perform a particular job. All the cost including cost of direct materials, sales taxes and manufacturing costs are recorded in the cost sheet.

To identify: The items recorded in a cost sheet and the usage of cost sheets by management and employees.

Explanation:

The items that are recorded in the cost sheet are as follows,

• Cost of labor.
• Manufacturing cost.
• Cost of overheads.
• Cost of Direct materials.

Usage of job cost sheets by management and employees,

• Job cost sheets are used by managers in order to determine the actual total cost of the job performed and to assess it and then to find ways to control that extra cost incurred.
• Assessing the cost sheets carefully helps to improve the efficiency in the future jobs assigned.

Hence, job cost sheet is an important document used in accounting in order to identify all the cost that has been incurred to perform a particular job.