Raw Materials Costs - Raw Materials Costs Helpful Hint...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Raw Materials Costs Helpful Hint Approvals are an important part of a materials requisition slip because they help to establish individual accountability over inventory. Companies assign raw materials costs when their materials storeroom issues the materials.  Requests for issuing raw materials are made on a prenumbered  materials requisition slip . The  materials issued may be used directly on a job, or they may be considered indirect materials. As  Illustration  15-6  shows, the requisition should indicate the quantity and type of materials withdrawn  and the account to be charged. The company will charge direct materials to Work in Process  Inventory, and indirect materials to Manufacturing Overhead.  Illustration 15-6    Materials requisition slip
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Ethics Note The internal control principle of documentation includes prenumbering to enhance accountability. The company may use any of the inventory costing methods (FIFO, LIFO, or average-cost) in costing 
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Raw Materials Costs - Raw Materials Costs Helpful Hint...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online