Question

For each of the following independent situations, give the source document that would be referred to for the necessary information.

Required:

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 2004-276?

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

Solution:

1. Direct materials costing $460 are requisitioned for use on a job - Material requisition slip

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 2004-276 - Labor time tickets

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 - Log book

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