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Question: What is the purpose of a job cost record?

Short Answer

Expert verified

Answer:

A job cost record is a document that shows the direct materials, direct labor, and manufacturing overhead costs for an individual job and allows the company to track the cost of individual jobs.

Step by step solution

01

Accounting records

Accounting records mean the record of assets, liabilities, cost incurred, and other monetary transactions. It is maintained to prepare the financial statements of the company.

02

Cost Record

Job cost record is prepared by an organization to aggregate the cost of direct material, labor and overhead applied to the specific job. It is a source document for job costing system.

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Most popular questions from this chapter

The T-account showing the manufacturing overhead activity for Aliyah Corp. for 2018 is as follows

Manufacturing overhead

195,000
203,000

Requirements

1. What is the actual manufacturing overhead?

Question: Using job order costing in a service company

Assume that Rothโ€™s accountants are expected to work a total of 8,000 direct labor hours in 2018. Rothโ€™s estimated total indirect costs are $96,000 and the allocation base used is direct labor hours.

Requirements

2. What indirect costs will be allocated to Client 507 if Jack Smith, an accountant at Roth Accounting, works 15 hours to prepare the financial statements?

June production generated the following activity in Bentley Chassis Companyโ€™s Work-in-Process Inventory account:

June 1 balance

\(36,000

Direct materials used

32,000

Direct labor assigned to jobs

40,000

Manufacturing overhead allocated to jobs

28,000

Additionally, Bentley Chassis has completed Jobs 142 and 143, with total costs of

\)37,000 and $48,000, respectively.

Requirements

2. Open a T-account for Work-in-Process Inventory. Post the journal entry made in Requirement 1. Compute the ending balance in the Work-in-Process Inventory

account on June 30.

Question: Journalize the following transactions for Margeโ€™s Sofas. Explanations are not required.

i. Adjusted for overallocated or underallocated overhead.

Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.

e. A computer repair service that makes service calls to homes.

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