3-1 Copyright © 2012 McGraw-Hill Ryerson Limited Job No. 1 Job No. 2 Job No. 3 Charge direct material and direct labour costs to each job as work is performed. Job-Order Costing – An Overview Direct Materials Direct Labour LO 2

3-2 Copyright © 2012 McGraw-Hill Ryerson Limited Manufacturing Overhead, including indirect materials and indirect labour, are allocated to all jobs rather than directly traced to each job. Job-Order Costing – An Overview Direct Materials Direct Labour Job No. 1 Job No. 2 Job No. 3 Manufacturing Overhead LO 2

3-3 Copyright © 2012 McGraw-Hill Ryerson Limited PearCo Job Cost Sheet Job Number A - 143Date Initiated Date Completed Department B3Units Completed Item Wooden cargo crate Direct MaterialsDirect LabourManufacturing Overhead Req. No.AmountTicketHoursAmountHoursRateAmount Cost SummaryUnits Shipped Direct MaterialsDateNumberBalance Direct Labour Manufacturing Overhead Total Cost Unit Product Cost The Job Cost Sheet LO 2

3-4 Copyright © 2012 McGraw-Hill Ryerson Limited Will E. Delite Measuring Direct Materials Cost LO 2

3-5 Copyright © 2012 McGraw-Hill Ryerson Limited LO 2 Measuring Direct Materials Cost

3-6 Copyright © 2012 McGraw-Hill Ryerson Limited Measuring Direct Labour Costs LO 2

3-7 Copyright © 2012 McGraw-Hill Ryerson Limited Job-Order Cost Accounting LO 2