JOC

Define Job Order Costing

• a form of product costing based on departmental process

• a form of specific order costing to meet customer’s special requirements

• a form of calculation of cost on work in process

• a form of product costing on a continuous basis

Which company is least likely to use a Job Order Costing system?

• Homebuilding company

• kitchen cabinet company

• Food manufacturer

• Audit firm

Which of the following source documents is used to record the amount of direct materials on the job cost sheet?

• Employee time ticket

• Material requisition form

• Production cost report

• Cash book

A company is more likely to use a job order cost system if

• it manufactures a large volume of similar products

• its production is continuous

• it manufactures product with unique characteristics

• it uses a periodic inventory system

The source of information for assigning costs to job cost sheets are :

• invoices, time ticket and predetermined overhead rate

• materials requisition form, time tickets and the actual overhead costs

• materials requisition form, payroll register and the predetermined overhead rate

• materials requisition form, time tickets and the predetermined overhead rate

Job order costing is used by the companies that manufactured homogeneous products.

• True

• False

Which company would most likely use job order costing?

• Service Company

• Beverage Company

• Oil Company

• Cereal Company