CA Intermediate · Cost and Management Accounting · Job Costing
In a job costing system, which document is the primary source for charging the cost of direct materials issued from the stores to a specific job?
The material requisition note is the primary document for charging direct materials to a job. It authorises issue from stores and states the job number, quantity and value. A goods received note records only receipt from suppliers and does not link materials to any specific job.
- AMaterial requisition noteCorrect
- BGoods received note
- CPurchase requisition
- DBill of materials returned by the supplier
Explanation
A material requisition note authorises issue of materials from stores and records the job number to which the cost is charged. A goods received note only records receipt of materials from suppliers, so it cannot assign cost to a job.
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