Answer
The seven steps in job costing are as follows:
1. Identify the specific job you want to calculate costs for.
2. Find the direct costs related to that job.
3. Choose the methods to distribute indirect costs to the job.
4. Find the indirect costs connected to each distribution method.
5. Calculate the rate for each distribution method.
6. Determine the indirect costs allocated to the job.
7. Add up all the direct and indirect costs to find the total job cost.
Work Step by Step
The seven steps in job costing are as follows:
1. Identify the specific job you want to calculate costs for.
2. Find the direct costs related to that job.
3. Choose the methods to distribute indirect costs to the job.
4. Find the indirect costs connected to each distribution method.
5. Calculate the rate for each distribution method.
6. Determine the indirect costs allocated to the job.
7. Add up all the direct and indirect costs to find the total job cost.
