Job cost record definition
/What is a Job Cost Record?
A job cost record is used to aggregate the costs of direct materials, direct labor, and the overhead to be applied to a specific job. As such, it is a source document for a job costing system, in which costs are accumulated for batches of units. The materials listed on the record are extracted from material requisition forms, while the hours listed on it are taken from employee and contractor timesheets. Any overhead charges added to the record are usually based on a standard overhead rate that was calculated at the beginning of the year. A job cost record also includes a header that contains the name and identifying number of the production job, which may also include a customer name and contract number. This header information is used to uniquely identify the job.
Job cost records are compiled by hand in a manual accounting system, but are more commonly produced as a report from a computerized accounting system.
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Example of a Job Cost Record
Eskimo Construction has taken on a project to construct a winter storage shed for the state Department of Transportation, to house road clearing equipment during the winter months. The related job cost record is as follows:
Job Number: 005831
Job Description: DOT Winter Storage Shed
Direct Materials:
Concrete for pad: $38,000
Lumber: $80,000
Roofing materials: $20,000
Drywall and finishing: $32,000
Total direct materials: $170,000
Direct Labor:
Carpenters: $40,000
Concrete finishers: $25,000
Roofers: $20,000
Electricians: $10,000
Supervisory: $15,000
Total direct labor: $110,000
Overhead:
Administrative: $5,000
Project management: $10,000
Equipment depreciation: $2,000
Permits and fees: $4,000
On-site utilities: $3,000
Total overhead: $24,000
Total job cost: $304,000
This job cost record provides a detailed listing of the costs incurred on the winter storage shed project. In reality, the record would be much more detailed, specifying the exact nature of all direct material, direct labor, and overhead costs.