The purpose of a materials requisition form is to:
A) track work-in process inventory so the appropriate percentage of completion proportion can be computed.
B) authorize the release of raw materials into work-in-process.
C) trigger the accounting entry to reduce raw materials inventory records and increase finished goods.
D) update the general ledger for the movement of materials into finished goods.

Question

Quizplus · Accepted Answer

A materials requisition form is used to authorize the release of raw materials into work-in-progress. It serves as a document to track the materials used and helps to maintain inventory control. It also ensures that the right materials are used in the right quantities and at the right time, which helps to prevent delays and ensures efficiency in production. Options A, C, and D are not the main purpose of a materials requisition form.

The Purpose of a Materials Requisition Form Is To