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Resume Job Order Costing. This approach is an excellent tool for tracing Job costing is used to accumulate costs at a small-unit level. In a job-order costing system, jobs are accounted for using the job-order cost sheet.

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Job order costing exercises, solved problems and solution. Every customer is treated uniquely and delivered products to specifically suit their individual needs. Job order costing is a cost accounting system in which direct costs are traced and indirect costs are allocated to unique and distinct jobs instead of departments.

Example: You want to build a deck onto the back of your house.

It is a widely used costing system in manufacturing as well as service industries.

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The job order cost system must capture and track by job the costs of producing each job, which includes materials, labor, and overhead in a manufacturing. The company computes a separate factory overhead rate at. The job cost records also serve as the subsidiary ledger or documentation for the manufacturer's cost of the work-in-process inventory, the finished goods.