Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Requisition of materials to molding includes a

Question

Quizplus · Accepted Answer

Requisition of materials means requesting materials from inventory to use in the production process. This results in a decrease in the raw materials inventory account, hence a credit entry is made. Option A is incorrect as it suggests a debit entry, which would increase the raw materials inventory account. Option B is incorrect as manufacturing overhead is not affected by the requisition of materials. Option D is incorrect as finished goods inventory comes into play at a later stage in the production process.

Fun Stuff Manufacturing Produces Frisbees Using a Three-Step Process That