A source document that production managers use to request ma

A source document that production managers use to request materials for production and that is used to assign materials costs to specific jobs or to overhead is a A. Job cost sheet. B. Production order. C. Materials requisition. D. Materials purchase order. E. Receiving report. Oxford Company uses a job order costing system. In the last month, the system accumulated labor time tickets total $24,600 for direct labor and $4,300 for indirect labor. hese costs were accumulated in Factory Payrollas they were paid. Which entry should 5. Oxford make to assign the Factory Payroll? A. Debit Payroll Expense $28,900; credit Cash $28,900. B. Debit Payroll Expense $24,600, debit Factory Overthend S4,300, credit Factory Payroll C. Debit Work in Process Inventory $24,600; debit Factory Overhead S4,300; credit Factory $28,900. Payroll $28,900 D, Debit Work in Process Inventory $24,60, debit Factory Overhead $4,300; credit Wages Payable $28,900. E. Debit Work in Process Inventory $28,900; credit Factory Payroll $28,900. 6. Labor costs in production can be: A. Direct or indirect. B. Indirect or sunk. C. Direct or payroll. D. Indirect or payroll. E. Direct or sunk.

Solution

4.C.materials requisition.

A source document that production managers use to request materials for production and that is used to assign material costs to specific jobs or to overhead.

5.B.

The following will be the journal entry:

6.A.Direct or indirect

The labour cost in production can be either direct or indirect, but not sunk or payroll.

direct labour cost is directly assigned to the produced units.

Indirect labour costs cannot be assigned to produced units.

Work in process inventory	24,600
Factory overhead a/c	4,300
...............To Factory payroll		$28,900