Asked by Ashley Young on Jun 10, 2024
Verified
The source document for the data for debiting Work in Process for direct materials is a
A) purchase order
B) purchase requisition
C) materials requisition
D) receiving report
Work in Process
An inventory account that represents goods that are in various stages of production but are not yet completed.
Materials Requisition
A document or electronic form used to request the transfer of materials from inventory for production or other internal use.
- Acquire knowledge of the paperwork and protocols involved in the financial management of materials and labor costs.
Verified Answer
ET
Elijah TuttleJun 16, 2024
Final Answer :
C
Explanation :
The materials requisition is the source document used to record the transfer of raw materials from the storeroom to the production floor. This document provides the details of the materials issued, the quantity, and the cost. It is used to debit Work in Process (WIP) for direct materials used in production. The purchase order and purchase requisition are used to order materials from suppliers, while the receiving report is used to record the receipt of materials.
Learning Objectives
- Acquire knowledge of the paperwork and protocols involved in the financial management of materials and labor costs.
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