A source document that production managers use to request materials for production and that is used to assign materials costs to specific jobs or to overhead is a:
A) Receiving report.
B) Job cost sheet.
C) Materials purchase order.
D) Production order.
E) Materials requisition.

Question

Quizplus · Accepted Answer

A materials requisition is a source document used by production managers to request materials for production. It is also used to assign material costs to specific jobs or to overhead, making it an important document for job costing and inventory control. Receiving reports are used to record the receipt of goods, job cost sheets are used to track labor and overhead costs for specific jobs, materials purchase orders are used to initiate the purchase of materials, and production orders are used to authorize the production of goods. However, none of these documents fulfill the specific purpose of requesting materials for production and assigning material costs to jobs or overhead.

A Source Document That Production Managers Use to Request Materials