A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the materials account to

Question

Quizplus · Accepted Answer

The materials requisitions are used to record the usage of materials in production, and the cost of these materials needs to be transferred to the work in process account. However, in addition to the direct cost of materials, there are indirect costs associated with production that cannot be traced directly to a specific product, such as factory overhead. Therefore, the cost of materials also needs to be allocated to the factory overhead account. Choice B is the only option that includes both work in process and factory overhead.

A Summary of the Materials Requisitions Completed During a Period