Answer
In job-costing systems, three major source documents are used to track and allocate costs to specific jobs. These documents include:
Job Orders: Job orders are the primary source document that initiates the job-costing process. They provide details about the specific job, including the job number, description, quantity to be produced, and any special instructions. Job orders serve as a directive to begin the production process.
Materials Requisition: When materials are needed for a job, a materials requisition form is used. This document lists the type and quantity of materials required for the job, along with the job number. It authorizes the release of materials from inventory to be used in the production process.
Time Tickets: Time tickets are used to record the labor hours expended on a particular job. They include the date, employee name or ID, the job number, and details of hours worked. Time tickets are essential for calculating direct labor costs and allocating them to specific jobs.
Work Step by Step
In job-costing systems, three major source documents are used to track and allocate costs to specific jobs. These documents include:
Job Orders: Job orders are the primary source document that initiates the job-costing process. They provide details about the specific job, including the job number, description, quantity to be produced, and any special instructions. Job orders serve as a directive to begin the production process.
Materials Requisition: When materials are needed for a job, a materials requisition form is used. This document lists the type and quantity of materials required for the job, along with the job number. It authorizes the release of materials from inventory to be used in the production process.
Time Tickets: Time tickets are used to record the labor hours expended on a particular job. They include the date, employee name or ID, the job number, and details of hours worked. Time tickets are essential for calculating direct labor costs and allocating them to specific jobs.
