ECONOMICS

Detailed explanation-1: -What is a Material Requisition Form? A material requisition form lists the items to be picked from inventory and used in the production process or in the provision of a service to a customer, usually for a specific job.

Detailed explanation-2: -Definition: A materials requisition form is a source document that the production department uses to request materials for manufacturing process. The production manager usually fills out the materials requisition form and delivers it to the materials or storage department where all of the raw materials are stored.

Detailed explanation-3: -Direct material refers to the raw materials that are directly used in the production process of goods and services of a company and are an essential component of the finished goods manufactured. Direct Material Costs are reported in the trading account debit side under the head “cost of goods sold.

Detailed explanation-4: -It is also known as material requisition slip, It is a voucher of authority used to get materials issued from store. Generally, it is prepared by the production department and materials are withdrawn on the basis of material requisition list or bill of materials.