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Direct materials requisitioned from the storeroom should be charged to the Work In Process Inventory account and the job cost sheets for the individual jobs on which the materials were used.
Direct Materials
Raw materials that can be directly attributed to the production of specific goods or services.
Work In Process Inventory
Inventory that includes items that are in the process of being produced but are not yet completed.
Job Cost Sheets
Documents that record and summarize the costs associated with a specific job or project, helping in tracking direct materials, direct labor, and overhead.
- Know the flow of costs in accounting systems, particularly how costs are accumulated and assigned in manufacturing.
- Recognize the role and charging mechanism of direct materials, work in process, and finished goods in the cost accounting cycle.
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Learning Objectives
- Know the flow of costs in accounting systems, particularly how costs are accumulated and assigned in manufacturing.
- Recognize the role and charging mechanism of direct materials, work in process, and finished goods in the cost accounting cycle.
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