Documentations for Job Order Costing

The video tutorial explains the documentation necessary for job order costing, focusing on three key documents: materials requisition forms, timesheets for labor tracking, and job cost sheets. These documents help track the flow of costs related to materials, labor, and manufacturing overhead, ensuring accurate job costing. The materials requisition form is used to manage inventory, while timesheets track labor costs. The job cost sheet summarizes all costs associated with a job, including materials, labor, and overhead.

What is the primary purpose of documentation in cost management?

• To increase the cost of production

• To track and manage costs related to materials, labor, and overhead

• To eliminate the need for inventory

• To reduce employee wages

What is the function of a materials requisition form?

• To order new materials from suppliers

• To withdraw materials from inventory for a job

• To calculate employee salaries

• To track sales revenue

Which type of inventory does the materials requisition form help manage?

• Office supplies inventory

• Raw materials inventory

• Work-in-progress inventory

• Finished goods inventory

What document is used by employees to record labor expended on each job?

• Materials requisition form

• Payroll report

• Job cost sheet

• Time ticket

What does a job cost sheet summarize?

• Only the overhead costs

• All product costs including materials, labor, and overhead

• Only the labor costs

• Only the material costs