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Unit 10: Job and Batch Costing
components or elements of the total cost of executing a job. Job cost sheet is used to record direct Notes
materials, direct wages and overheads applicable to the job.
A job cost sheet facilitates the determination of profit or loss on every job. Estimated costs are also
recorded on the job cost sheet which facilitates comparison of actual costs with the estimated cost
and variation in the cost is known.
A specimen form of job cost sheet is given below:
ABC Company Limited
Job Cost Sheet
Job No. : ......................... Quantity : .........................
Job Description : ......................... Date of Completion : .........................
Name of the Customer : ......................... Date of Commencement : .........................
particulars of Job : ......................... production Order No. : .........................
Material Cost Labour Cost Overheads
Date Deptt. MR Amt. Date Deptt. Time Amt. Date Deptt. Rate Amt.
No. (`) Ticket (`) (`) (`)
No.
Total
Summary of Cost
Estimated Cost (`) Actual Cost (`) Variance (`) (+)/(-)
Material cost
Labour cost
Overheads
Total
Explanation of Variance : ................................... Prepared by : ...................................
Remarks : ................................... Checked by : ....................................
Example: The following information is extracted from the job ledger of Neelam
Enterprises in respect of Job Number 510:
Materials ` 7,000
Wages 100 hours @ ` 7
Variable overheads incurred for all jobs ` 15,000 for 5,000 labour hours.
Find the profit if the job is billed for ` 9,000.
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