The exercise illustrates the use of source documents unique to job order costing such as the job cost sheet, time tickets, and materials requisition forms.
The Cost Accounting Department (i.e., the instructor) completes the cost information on the form (i.e., unit costs and total costs), and begins to keep track of the entire job's costs via a Job Cost Sheet (see Figure 4 for the Job Cost Sheets).
Teaching opportunity: Explanation of a Job Cost Sheet.
Supervisor Instructor's signature Using Time Ticket #1, the Cost Accounting Department updates the Job Cost Sheet for Job #1 with $45 DL, and the instructor accordingly updates the T-accounts on the board, increasing Wages Payable and increasing WIP by $45.
They should gain this understanding by summarizing the production cost on their job cost sheet.
Each team is issued a job cost sheet, two material requisition forms, and a time card for each member of the team.
The remaining copy returns to production with the material, where it is used as the source document to record raw materials on the job cost sheet.
The job coordinator receives the issued material and the team accountant enters the receipt of raw materials on the job cost sheet. Job teams build their product and keep track of their time on individual time tickets.
To visualize how costs "attach" when parts are assembled; to learn how to construct a job cost sheet
The forms consist of a job cost sheet, material requisition forms, time sheets, raw material inventory cards, and receiving reports (see Exhibit 1 in instructors' notes for all simulation forms).
The T account represents the job cost sheet prepared by the team during production.
The team accountant completes the job cost sheet, using material requisition forms, time tickets, and predetermined factory overhead rates.