Monday, 29 October 2012

Discuss the cost accumulation procedure in job order costing?




 The procedure for cost accumulation in job order costing:

1. Materials costs:
                           In job order costing, materials requisitions are used and changes are made to order.

2. Labor costs:
                          Time tickets sheet are used in job order costing to accumulate costs by jobs.

3. Factory overhead:
                            Job cost requires the use of predetermined rates for charging overhead to orders.

4. Summarizing costs:
                           Job  order costs sheet is used to accumulate the cost of an order in job order      costing.

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