Auditors test the quantity of materials charged to work-in-process by tracing these quantities to
A) cost ledgers.
B) perpetual inventory records.
C) receiving reports.
D) material requisitions.

Question

Quizplus · Accepted Answer

Material requisitions are documents that authorize the transfer of materials from the storeroom to the production area, and auditors trace quantities charged to work-in-process to these requisitions to verify accuracy.

Auditors Test the Quantity of Materials Charged to Work-In-Process by Tracing