The cost of direct materials is assigned to a job by the use of a source document known as a _____.
A) time ticket
B) materials requisition form
C) schedule of cost of goods manufactured
D) sales receipt
E) All of these are correct.

Question

Quizplus · Accepted Answer

The materials requisition form is used to document the transfer of direct materials from the storeroom or warehouse to the production floor. This form provides information about the quantity and cost of materials used for a specific job or production order. It serves as a source document to assign the cost of direct materials to a job. Time tickets are used to record the amount of time a worker spends on a specific job. The schedule of cost of goods manufactured summarizes the total cost of goods produced during a specific period. Sales receipts are used to document sales transactions with customers.

The Cost of Direct Materials Is Assigned to a Job