Question

For each of the following independent situations, give the source document that would be

referred to for the necessary information.

1. Direct materials costing $460 are requisitioned for use on a job.

2. Greiner’s Garage uses a job-order costing system. Overhead is applied to jobs based on

direct labor hours. Which source document gives the number of direct labor hours worked

on Job 2005-276?

3. Pasilla Investigative Services bills clients on a monthly basis for costs to date. Job 3-48

involved an investigator following the client’s business partner for a week by automobile.

Mileage is billed at number of miles times $0.75.

4. The foreman on the Jackson job wonders what the actual direct materials cost was for that job.

Answer 1

There are three documents used in Job Order Costing System. a. Material Requisition Form - Which is used to track materials used in a particular job. b. Time Tickets - Time Tickets are used to find number of direct Labor hours used in a particular job. c. Job Cost sheet - Contains details of Job, period, due date, Materials used, Direct Labor hours used, Overheads applied to that particular job. Answer to Point 1: Materials Requisition Form is Source document to find direct materials requisitioned for a job. Answer to Point 2: Time Tickets are source document to find number of direct labor hours worked for job 2005 - 276. Answer to Point 3: Job Cost sheet is source document for mileages and number of miles travelled by the Investigator. Answer to Point 4: Materials Requisition Form is Source document to find direct materials requisitioned and direct materials cost for that job.