Since lawyers and accountants work with different clients on unique accounts many.

Example of job order costing. Its mostly used in service-basedprofessional organizations where the scope of services performed for each client is different. Example of Job Order Costing. A job order costing system is suited to companies that offer distinct or custom products and services.

Contractors are a good example of the type of business that would typically use a job order costing system. Direct Labor 2000 hour with a cost of 10 per hour. The company uses machine hours to apply overhead cost to jobs.

Exercise 5 Job Order CostingJournal Entries T Accounts Income Statement Hogle Company is a manufacturing firm that uses job order costing system. Contractors are a good example of the type of business that would typically use a job order costing system. With job order costing products are made individually or in a smaller group rather than in a large.

DS purchased raw materials such as aluminum fiber etc at a cost of 4 million. Requisitioned 300 yards of silk to produce Job 101. Material 5000 units with cost 2 per unit.

Job order costing is a method where the cost of manufacturing each order is determined separately. Example of Job Order Costing. On completion of the job the total overhead is charged on the jobs separately.

If you had an order of making 1000 custom t-shirts you had to start by adding the cost of blank t. For example Coca-Cola may use process costing to track its costs to produce its beverages. Consultants are another good example.