Chapter 21, Problem 12RQ

Each employee of the Gedding Manufacturing Co., a firm using a job-cost inventory costing method, must reconcile his or her total hours worked with the hours worked on individual jobs using a job time record when the weekly payroll records are submitted. The total hours worked on the job cost record must agree to the total on the time record. Explain how you could test the direct labor dollars included in inventory as a part of the payroll and personnel tests.