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What is the relationship between the job cost sheet and the work in process inventory account?...

What is the relationship between the job cost sheet and the work in process inventory account?
There are three inventory control accounts in a job order system. Identify the control accounts and their subsidiary ledgers.
Many of you want to operate a small business... In order to operate your business, you will need a good understanding of managerial accounting, as well as many other skills. Much information is available to assist people who are interested in starting a new business. A great place to start is the website provided by the Small Business Administration, which is an agency of the federal government whose purpose is to support small businesses. Go to the Small Business Administration website, search “Is entrepreneurship for you,”. What are some of the characteristics required of a small business owner?

Expert Solution

ANSWER

A.

At any point in time, the balance in Work in Process Inventory should equal the sum of the costsshown on the job cost sheets of unﬁnished jobs. Alternatively, posting to Work in Process Inventorymay be compared with the sum of the postings to the job cost sheets for each of the manufacturingcost elements.

B. The three inventory control accounts in a job order system:

1. raw material inventory - material inventory records

2.work in process inventory - job cost sheets

3. finished goods inventory - finished goods records

.

C. Your chances of success in small business are increased if you have the following characteristics: You are a self-starter, you get along with many different kinds of people, you are good at making decisions, you have physical and emotional stamina, you are well organized, you have a strong desire to succeed and you will receive family support during the start up phase.

Listed below are the 10 steps for starting a business.

1. Write a business plan.

2. Get business assistance and training.

3. Choose a business location.

4. Finance your business.

5. Determine legal structure of your business.

6. Register a business name.

7. Register for state and local taxes.

8. Obtain business licenses and permits.

9. Understand employer responsibilities.

10. Find local assistance.

ekkarill92 answered 2 years ago

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