Ontario Machine Tool Company has incurred the following costs on Job ES34, an or
ID: 2461343 • Letter: O
Question
Ontario Machine Tool Company has incurred the following costs on Job ES34, an order for eight specialized cutting tools to be delivered at the end of next month.
Direct Materials:
On March 5th, requisition number 870 was issued for 8 titanium blanks to be used in the special order. The blanks for $25.00 each.
On March 8th, requisition number 873 was issued for 8 hardened cutting nibs, also to be used in the special order. The nibs cost $9.20 each.
Direct Labour:
On March 9th, Harry Turner worked from 9:00am until 12:15pm on job ES34. He is paid $18.00 per hour.
On March 21st, Mary Gonzales worked from 2:15pm until 4:30pm on Job ES34. She is paid $19.00 per hour.
* On what documents could these costs be recorded.
* How much cost should have been recorded on each of the documents for Job ES34
Explanation / Answer
Part 1)
On what documents could these costs be recorded?
The cost of direct material and direc labor would be recorded on the following four documents:
1) Material Requisition Form for Job ES34 (for requesting material for the job)
2) Time Ticket for Harry Turner (for recording time spent by Harry along with cost on the job)
3) Time Ticket for Mary Gonzales (for recording time spent by Maryalong with cost on the job)
4) Job Cost Sheet (for recording the cost of direct material and direct labor for the job)
____________
Part 2)
How much cost should have been recorded on each of the documents for Job ES34?
The costs on each form would be recorded as follows:
__________
__________
__________
Material Requisition Form Date Requisition No. Quantity (A) Unit Cost (B) Total Cost (A*B) Titanium Blanks 5th March 870 8 25 200 Hardened Cutting Nibs 8th March 873 8 9.2 73.6 Total $273.6Related Questions
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