COST ACCOUNTING
MANUFACTURING OVERHEAD
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Time Ticket
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Material Requisition Form
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Production Cost Report
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Cash Book
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Detailed explanation-1: -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-2: -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-3: -Direct materials are requested on a materials requisition form and recorded on the job cost sheet when transferred from raw materials inventory to the work in process inventory. Time tickets are used to accumulate the labor associated with particular jobs and assigned to those jobs on the job cost sheet.
Detailed explanation-4: -In a job-order costing system, a job-cost sheet is used to record all manufacturing costs. These costs include direct material, direct labor and manufacturing overhead. Actual direct material and actual direct labor costs will generally be used since these costs are traceable to the product.