The following are the seven steps in the job costing process:
#1 - Identify the job that is the cost object.
#2 - Identify the direct costs.
#3 - Select the cost-allocation bases to use for allocating indirect costs (overhead costs) to the job.
#4 - Identify the indirect costs associated with each cost-allocation base.
#5 - Compute the rate per unit of each cost-allocation base used to allocate indirect costs to the job.
#6 - Compute the indirect costs allocated to the job. This relates to the overhead costs.
#7 - Compute the total cost of the job by adding all direct and indirect costs assigned to the job.