Need help with accounting question. Please show your work to help me understand. Thank you.
When the cutting department is ready to start a batch of 35 jerseys, the manager will order one yard of jersey fabric and one yard of backing material for each jersey. In a company with an automated job cost system, the materials requisition can be completed simply by entering the appropriate information directly into the system. In that case, no materials requisition slip is needed. The computer system automatically posts the amount of the materials requisition to the job cost sheet. Tracing Direct Labor Costs The direct labor costs for a particular job are recorded in much the same way as direct materials costs. When employees begin working on a particular job, they record the starting time on a time ticket, as shown in Exhibit 4.14. The time ticket also records the employee's name, the date, and the job number. When a work session is completed, the employee records the ending time. (In an automated environment, employees may clock in and out on a computer or other automated time clock rather than manually completing a time ticket) At the end of the day, the manager (or computer) calculates the total hours worked on each job that day. The total direct labor cost of the day's work can then be calculated and recorded on the job cost sheet using the employee's wage rate. Look back at Exhibit A 10 and find the entry for this time ticket on the job cost sheet. When the cutting department is ready to start a batch of 35 jerseys, the manager will order one yard of jersey fabric and one yard of backing material for each jersey. In a company with an automated job cost system, the materials requisition can be completed simply by entering the appropriate information directly into the system. In that case, no materials requisition slip is needed. The computer system automatically posts the amount of the materials requisition to the job cost sheet. Tracing Direct Labor Costs The direct labor costs for a particular job are recorded in much the same way as direct materials costs. When employees begin working on a particular job, they record the starting time on a time ticket, as shown in Exhibit 4.14. The time ticket also records the employee's name, the date, and the job number. When a work session is completed, the employee records the ending time. (In an automated environment, employees may clock in and out on a computer or other automated time clock rather than manually completing a time ticket) At the end of the day, the manager (or computer) calculates the total hours worked on each job that day. The total direct labor cost of the day's work can then be calculated and recorded on the job cost sheet using the employee's wage rate. Look back at Exhibit A 10 and find the entry for this time ticket on the job cost sheet
