CMA Intermediate · Cost Accounting · Material Costs
In a stores ledger, which document is the primary authority for recording the quantity and value of materials returned from the factory floor to the store?
The material returned note is the document used when unused or surplus materials are sent back from the production department to the store. It supports the credit to the job or department and the addition to stores records. A requisition note covers issues, not returns.
- AMaterial requisition note
- BPurchase order
- CMaterial returned noteCorrect
- DGoods received note
Explanation
When surplus or unused material goes back from production to stores, a material returned note is raised so that stores records and the job cost are corrected. A requisition note records issues, a purchase order is placed on suppliers, and a goods received note records supplier deliveries.
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