John knows that 1,000 widgets are needed in the upcoming job order. What type of document does he need to fill out in order to put the widgets into production?
Question 9 options:
Job cost record |
|
Materials requisition |
|
Direct materials requisition |
|
Subsidiary ledger |
A material requisition form lists the materials to be picked from inventory to be used in production process.
Since John requires 1000 widgets for production he has to fill the form named material requisition form.
So the answer is Option B.
Reasons for other options to be incorrect:
1. Job cost record is used to accumulate all the costs incurred for production such as materials, labour and overheads. It can’t be used as requisition form.
2. There is no such form called direct materials requisition form. There is only material requisition form.
3. A subsidiary ledger is part of book keeping and is no way related to production.
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