Final answer:
A job order cost sheet includes all manufacturing costs associated with a job, such as direct materials, direct labor, and allocated manufacturing overhead costs; it does not include the selling price of the job or all overhead costs for the period.
Step-by-step explanation:
A job order cost sheet includes all the manufacturing costs associated with a job. The selling price is not typically included, as the cost sheet focuses on documenting the costs of production rather than sales activity. When a job is completed and transferred to the cost of goods sold (COGS), a total of all the accumulated costs is noted. This includes both the direct materials and labor associated with a job, as well as the allocated manufacturing overhead for that job. For example, in a barber shop, the fixed costs would involve the space and equipment, while variable costs would encompass the wages of the barbers. These costs are captured to compute the total cost of providing services for a period.
However, it is important to note that the job order cost sheet does not include all manufacturing overhead for the period unless those overhead costs are allocated to the respective job order during that period. Overhead costs are typically allocated based on an overhead rate calculated at the beginning of the period or year.