ACCA MA Management Accounting

Job Order Costing

Job Order Costing
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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



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