Job Order Costing Assignment Final.docx

Job Order Costing Assignment Final.docx - Bones N Belly...

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Bones N Belly Rubs Custom Pet Homes Memorandum To: Eleanor Smith and Peggy Jones From: Matt Binder Job order costing is used in companies that make or offer custom services, products, or projects, where each customer or service is different from the next. Job order costing is a type of cost system that helps managers budget and plan, as well as control spending and evaluate and keep track of performance, labor, materials, and other expenses and administrative items. Since you wish to design custom homes for dogs and cats, job order costing is the system to use because it is specifically designed for custom and unique projects and services. Through this system you will be able to keep track of direct materials, direct labor, and overhead. Direct materials are all of the materials that go into the project, that BONES N BELLY RUBS CUSTOM PET HOMES
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can be traced to each individual project. These include the wood and siding to build these houses. Direct labor
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  • Fall '15
  • Accounting, Eleanor Smith, belly rubs, Matt Binder

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