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lo 4.7how do the job cost sheets act as a subsidiary ledger for the work in process inventory if journal entries are not made to the job cost sheets?

the cost sheet eventually becomes a summary of all costs, including factory overheads involved in completing a job.

Explanation:

The cost sheets are subsidiary accounts and are controlled by work in process account. Jobs performed on the basis of computer specifications allow the computation of a profit and loss on each order.

The cost of each order produced for a given customer or the cost of each lot placed in stock is recorded on a summary sheet called a job order cost sheet.This master sheet is designed to collect the costs of materials labor and factory overhead applicable to every specific job.

Cost sheets differ in form , content and arrangement in each business. In each form the upper section provides space for a job number, name of customer , the description of the items to be produced , the quantity the date started and the date completed . In factories with departmentalized operations cost sheet will show the material, labor, and factory overhead applied to each department or cost center.

Distribution entries are usually recorded on a weekly basis , so that labor costs remain current on the job order costs sheets and available to operating management.

Indirect Labor is also accounted for through the time tickets and clock card and treated in the same way as  the indirect material .

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