Job cost sheet is a document used to record manufacturing costs and is prepared by companies that use job-order costing system to compute and allocate costs to products and services.
The accounting department is responsible to record all manufacturing costs (direct materials, direct labor, and manufacturing overhead) on the job cost sheet. A separate job cost sheet is prepared for each individual job.
All necessary details about the job and costs incurred to complete the job are written on the job cost sheet.
The information about a job or order that is shown on job cost sheet usually includes job number, product name, starting date, completing date, number of units completed etc.
The information about manufacturing costs that is shown on job cost sheet usually includes materials requisition number, cost of direct materials issued, time tickets, direct labor hours, direct labor rate per hour and total cost, manufacturing overhead rate per direct labor or machine hour and total cost etc.
Job cost sheet is not only used to charge cost to jobs but is also a part of the company’s accounting record. It is used as a subsidiary ledger to the work in process account because it contains all details about the job in process.
An example of a complete job cost sheet is given below: