 for a manufacturing company for a company using a job cost system. So when considering a time ticket we want to keep in mind of course that when we track the time of workers that are going to be working on a job we need to be able to apply it to a particular job. The time ticket here is going to be used for us to track the cost so that we know the cost of the job. Now of course we also in a job cost system would be tracking this out probably to help us to build the job as well they're going to be related in some way but notice here what we're trying to do is get to the cost of the job with the time ticket everything we're tracking here is the actual cost of the job. So when we consider the time ticket then we're going to have you know any employee that works on the job and we're ultimately going to take their wages that we pay them which we usually record as wages expense or something or you know hourly wages expense to not an expense but to the job to work in process. So that's in essence what we're doing here we're tracking the time we're going to apply that time not to an expense at the period in which we paid the employee or even in which they worked but to an asset inventory not expensing it until we sell the inventory in the form of cost of goods sold. So this is going to be a time ticket we're going to have the employee here we'll have the employee number if we have one and then of course the job that's going to be the important component the job that we're going to assign it to we you know we have this the similar punching in the time in time out the time that elapsed the rate and that'll give us the amount that we're going to apply to each job. Now of course this could be used in a computerized system we could have a you know an old time ticking tracker that we're that we're going to have so whatever way that we're going to use to format this we got to make sure that whatever time we have we're applying it out to the correct job so that we can then post this to work in process and have it be supported then by the job sheets. So here's an example of the job sheet I'm not tying this ticket in directly to it but just an example of a job sheet then this is a particular job that's going to support all the work in process accounts everything that's on the work in process in a similar way as a subsidiary account by customer supports what's in accounts receivable the job sheets are going to report what's on the balance sheet what's on the trial balance for work in process so in this case we're talking about labor so we're tracking labor here so these time tickets are going to help us then to track the labor we might have if we're working a big construction job or something like that we might have you know multiple time tickets that we're going to have to track and we're going to have to apply them to these job sheets and note what's happening here again when we record the journal entry as we'll see we're not going to record it to wages expense meaning when we process payroll we're in essence debiting not an expense but inventory in the form of work in process supporting it by the job we won't expense it until we sell the inventory at the end of this process so so that's going to be what the ticket function will be we need some format to do that if we're just if we're doing a construction job then we got to apply that apply it out some way if we have a service a bookkeeping company or a law firm then again we have to apply some way the wages out now again the billing is going to be similar to if we had a if we had a construction company or a a law firm or something like that when we create the invoice we might have a billable rate which may or may not be the same as the as the rate that we're using to apply the cost to the job but here again we're looking at the cost so we're looking at the actual cost meaning in other words this looks like a lot like an invoice we may use this to create the invoice we may take the bottom line number of actual costs as close as we can except for the overhead and mark it up so we might say now we're going to mark it up 30 or 40 and that's going to be our sales price or if we're if we're a bookkeeping firm or a a bookkeeping firm or something like that or a law firm we might be tracking the time of our multiple employees and on the invoice we might be having a similar tracking but we might use billable rates that are different from the pay rate in order to create the invoice that might be a way that we create basically invoices but here we're tracking the actual cost of the employees here because we're tracking the cost of the job okay so if we then took this the direct labor and we took all all of these uh labors that were applying to these jobs we took all the time tickets and we applied them out to the jobs so we have a list of jobs now that we're saying all these jobs now are listed out and we know that direct labor applied to them in other words we can think of it this way if we're saying that the payroll for this time period added up to five