Job-order costing system

Job order costing system is generally used by companies that manufacture a number of different products. It is a widely used costing system in manufacturing ,,,,,

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 ,,,,,

After accepting a job or order, the first step in a job order costing system is to determine the direct materials requirement to complete the job. The ,,,,,

In job order costing system, the method of measuring and recording direct labor cost is similar to measuring and recording direct materials cost. Direct ,,,,,

Manufacturing costs other than direct materials and direct labor are known as manufacturing overhead (also known as factory overhead). It usually consists ,,,,,

Non-manufacturing expenses have no effect on the production cost of the company because they are treated as period costs. Non-manufacturing costs are ,,,,,

Recording finished goods and cost of goods manufactured: In a job order costing system, all manufacturing costs (i.e., direct materials, direct labor, ,,,,,

The over or under-applied manufacturing overhead is defined as the difference between manufacturing overhead cost applied to work in process and manufacturing ,,,,,

The Fine manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2012, ,,,,,

Predetermined overhead rate is used to apply manufacturing overhead to products or job orders and is usually computed at the beginning of each period by ,,,,,