ECONOMICS

COST ACCOUNTING

JOB ORDER COSTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The source documents that production managers use to request materials for production and which are used to assign the cost of materials to specific jobs or to overhead are:
A
Job Cost Sheet
B
Production Order
C
Materials Requisition
D
Materials Purchase Order
Explanation: 

Detailed explanation-1: -The correct option is C. A material requisition, often referred to as a material request, is a document used by the manufacturing department to track the quantity of direct materials moved when raw materials were being used to produce goods or to seek the materials necessary to finish a production process.

Detailed explanation-2: -Answer and Explanation: The correct answer is a. Materials requisition slip. Material requisition slip is a document used to record the used direct materials or amount of direct materials that were transferred from raw materials to work in process account during the period.

Detailed explanation-3: -The source documents for direct materials is the invoices from the material purchases. The source documents for direct labor is the time cards of the employees. The source documents for the manufacturing overhead is the allocation method utilized by the firm in addition to the invoices of the overhead allocated.

Detailed explanation-4: -Job cost sheet. This is the correct answer.

There is 1 question to complete.