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

Question

Quizplus · Accepted Answer

The materials requisitions completed during a period are used to determine the cost of materials used in production. This cost is then transferred from the materials controlling account in the general ledger to the appropriate controlling accounts, which are work in process and factory overhead. Choice A (work in process and cost of goods sold) is incorrect because the cost of goods sold controlling account would only be debited when finished goods are sold, not when materials are used in production. Choice C (finished goods and cost of goods sold) is incorrect because the cost of goods sold controlling account would only be debited when finished goods are sold. Choice D (work in process and finished goods) is incorrect because the finished goods controlling account is only credited when finished goods are completed, not when materials are used in production.

A Summary of the Materials Requisitions Completed During a Period