Question

A document in a job order costing system that is used to record the costs of producing a job is a(n):

A. Job cost sheet.
B. Job lot.
C. Finished goods summary
D. Process cost system.
E. Units-of-production sheet.

Answer 1

A Job cost sheet is used in a job order costing system to record the specific costs of producing a job, tracking materials, labor, and overhead. It is critical for the accurate costing of a job and managing overall production expenses.

Step-by-step explanation:

A document in a job order costing system that is used to record the costs of producing a job is a(n): A. Job cost sheet.

In a job order costing system, a job cost sheet is used to compile the costs associated with a specific job. This document helps account for materials, labor, and overhead costs that are directly related to the production of a particular good or service. Understanding the total cost, which is the sum of all these costs, is crucial for setting product prices and analyzing profitability.

Each input used in production has a corresponding expense or factor payment, such as wages for labor. The job cost sheet records these costs meticulously to ensure accurate tracking and costing of the job. In the long run, analyzing the allocated costs on the job cost sheet allows firms to make informed decisions regarding production technology and cost management strategies.