Ordering QuestionClick and drag on elements in orderList the following documents in the order in which they are used when recording indirect materials costs in job order cost accounting, with the first document on top.InstructionsDrag and drop application.Choice 1 of 4. Materials ledger cards toggle buttonMaterials ledger cardsChoice 2 of 4. Factory overhead ledger toggle buttonFactory overhead ledgerChoice 3 of 4. Materials requisitions toggle buttonMaterials requisitionsChoice 4 of 4. Receiving reports toggle buttonReceiving reports
Question
Ordering QuestionClick and drag on elements in orderList the following documents in the order in which they are used when recording indirect materials costs in job order cost accounting, with the first document on top.InstructionsDrag and drop application.Choice 1 of 4. Materials ledger cards toggle buttonMaterials ledger cardsChoice 2 of 4. Factory overhead ledger toggle buttonFactory overhead ledgerChoice 3 of 4. Materials requisitions toggle buttonMaterials requisitionsChoice 4 of 4. Receiving reports toggle buttonReceiving reports
Solution
The order in which these documents are used when recording indirect materials costs in job order cost accounting is:
- Receiving reports
- Materials requisitions
- Materials ledger cards
- Factory overhead ledger
Here's why:
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Receiving reports: This is the first document used when materials are received. It records the receipt of materials from suppliers.
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Materials requisitions: After the materials are received, they are requisitioned for use in the factory. This document records the request for materials to be moved from the storeroom to the factory floor.
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Materials ledger cards: These cards are used to keep track of the quantity and cost of materials in the storeroom. When materials are requisitioned, the ledger cards are updated to reflect the decrease in materials.
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Factory overhead ledger: This is the final document used in the process. It records the cost of indirect materials as part of the factory overhead costs.
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