Q17-4RQ - Horngren'S Financial And Managerial Accounting

Question

Question: What is the purpose of a job cost record?

Step-by-Step Solution

Answer

Answer:

A job cost record is a document that shows the direct materials, direct labor, and manufacturing overhead costs for an individual job and allows the company to track the cost of individual jobs.

Step 1: Accounting records

Accounting records mean the record of assets, liabilities, cost incurred, and other monetary transactions. It is maintained to prepare the financial statements of the company. 

Step 2: Cost Record

Job cost record is prepared by an organization to aggregate the cost of direct material, labor and overhead applied to the specific job. It is a source document for job costing system.