What is a Job Order Cost Sheet?

A job order cost sheet accumulates the costs charged to a specific job. It is used within a job costing system. This cost sheet is most commonly compiled for single-unit or batch-sized production runs. The information contained within the cost sheet includes the job number, start and stop dates, the number of units produced, all direct materials and direct labor costs associated with a job, and a factory overhead allocation. A sample job order cost sheet appears in the following exhibit.

How is a Job Order Cost Sheet Used?

The information tracked on a job order cost sheet can be used for cost-plus billings to customers, where the sheet provides backup if a customer demands to know the details supporting a billing. The sheet can also be used for internal reporting, so that management understands whether the price quoted for a job resulted in a profit. The sheet also provides the detail to identify any variances from expected costs, which may be used to enhance operations in the future.