COST ACCOUNTING
JOB ORDER COSTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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TRUE
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FALSE
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Detailed explanation-1: -The source documents for direct materials is the invoices from the material purchases. The source documents for direct labor is the time cards of the employees. The source documents for the manufacturing overhead is the allocation method utilized by the firm in addition to the invoices of the overhead allocated.
Detailed explanation-2: -Answer and Explanation: The correct answer is a. Materials requisition slip. Material requisition slip is a document used to record the used direct materials or amount of direct materials that were transferred from raw materials to work in process account during the period.
Detailed explanation-3: -Explanation: The original source document that reports how much time was spent working on a job was the time ticket. The time ticket or better known as time cards are received from employees and management and entered into the accounting records during the payroll process.