ECONOMICS

Detailed explanation-1: -Normally a job cost sheet is not prepared for a job until after the job has been completed. When the predetermined overhead rate is based on direct labour-hours, the amount of overhead applied to a job is proportional to the amount of actual direct labour-hours incurred on the job.

Detailed explanation-2: -Once a job is completed, the total costs assigned to the job are transferred from work‐in‐process inventory to finished goods inventory. Once the job is sold and delivered, the job costs are transferred from finished goods inventory to cost of goods sold.

Detailed explanation-3: -Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost incurred in completing a job. A job cost sheet is used to record how much a customer pays for the job once the job is completed.

Detailed explanation-4: -A job cost sheet shows information about each of the following items except: The direct labor costs assigned to the job.

Detailed explanation-5: -Answer and Explanation: The correct answer is a. It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.