This tool demonstrates a basic job costing system. The following assumptions apply:
(1) There are three specific jobs: X, Y, and Z
(2) There are two employees: A and B
(3) There are three days of activity: 1, 2, and 3
(4) There are three types of direct material: AA, BB, and CC
(5) A is paid $15 per hour and B is paid $20 per hour
(6) AA costs $11, BB costs $23, and CC costs $9
(7) Overhead is applied at $20 per direct labor hour
(8) Each employee is only allowed to requisition one item of direct material daily
Complete each time card below by assigning exactly 8 hours of work to each day for each employee (use the pick lists accessible from within the boxed areas; it is up to you to choose how many hours are worked on each job or on administrative time that is not charged to a specific job). Similarly, use the pick lists within the material requisition cards to decide which materials were used by each employee on each day.
The job costs sheets will be automatically prepared based on your selections. Carefully tie the job costs sheets to the entries you made on the time sheets and material requisitions. Contemplate how this type of system is used in actual business environments to accurately trace time and materials to specific productive activities.
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