Asked by Shannon Flynn on Jun 13, 2024
Verified
Describe the flow of labor costs in a job order costing system,and identify the documents used in the system.
Labor Costs
The total monetary costs associated with the employment of labor, including wages, benefits, and taxes.
Job Order Costing System
An accounting system that accumulates costs by job, allowing for detailed tracking of the cost of materials, labor, and overhead on a per-job basis.
- Explain the process and recording of labor expenses within a job order costing framework.
Verified Answer
DT
Dilbar ThindJun 14, 2024
Final Answer :
Labor costs are classified as either direct or indirect.The flow of direct labor costs in a job order costing system begins by employee tracking their hours worked to specific jobs using time tickets.Employees who perform work classified as indirect labor also use time tickets,but their work is not assigned to individual jobs,but to overhead.
Learning Objectives
- Explain the process and recording of labor expenses within a job order costing framework.
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