A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for
A) Work in Process and Cost of Goods Sold
B) Work in Process and Factory Overhead
C) Finished Goods and Cost of Goods Sold
D) Work in Process and Finished Goods

Question

Quizplus · Accepted Answer

The materials requisitions are used to track the cost of materials used in production. This cost is eventually transferred from the controlling account in the general ledger to the controlling accounts for Work in Process and Factory Overhead, as these accounts are responsible for recording the cost of products being manufactured. Finished Goods and Cost of Goods Sold come into play after the product has been completed and is ready to be sold to customers.

A Summary of the Materials Requisitions Completed During a Period