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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

Justice Companyโ€™s Manufacturing Overhead account is given below. Use this informationto prepare the journal entry to adjust for overallocated or underallocatedoverhead.

Manufacturing overhead

148000147000

Root Trailersโ€™ job cost records yielded the following information:

Use the dates in the table to identify the status of each job. Compute the following

balances for Root:

a. Work-in-Process Inventory at July 31

The manufacturing records for Sporty Kayaks at the end of the 2018 fiscal year show the following information about manufacturing overhead:

Overhead allocated to production

\(409,200

Actual manufacturing overhead cost

432,000

Predetermined overhead allocation rate

\)44 per machine hours

Requirements

1. How many machine hours did Sporty Kayaks use in 2018?

Distinguishing between job order costing and process costing

Would the following companies most likely use job order costing or process costing?

d. A professional service firm

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.

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