Small businesses maintain accounts for individual job orders .Due to lack of huge manufacturing orders they find ease to maintain for cost accounts on basis of separate orders .this senarios is the main theme behind job order costing. Accounts for job orders help SMEz to
- trace separate material , labor and other costs and certain order
- remind dates of receiving and delivering order
- total cost incurred to certain order
- price charged and profit earned to order
Job order specifications are recorded on job order card with related customer and order details.
JOB cost card
|
Job # XXX Customer Name Date Started : XXX Description Date Ordered : XXX Quantity Delivery Date : XXX Date Completed : XXX Price : |
| DATE | Material | Labour | FOH | TOTAL |
| Date started | X | X | X | X |
| X | X | X | X | |
| Date completed | X | X | X | X |
| XXX |
SUMAMARY
Material X
Labor X
Overhead X
_____
TOTAL COST XX All costs related to particular job are charged to single account to accounted for total cost on that job
PRICE (XX)
_______
PROFIT XXX
Normally cost plus pricing techniques are used in jib order. Total cost each order is determined and then selling price is decided by adding certain % of profit to it