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CA Intermediate · Cost and Management Accounting · Material Cost

Which of the following is the correct description of the 'Bin Card' maintained in a store?

A bin card is a quantity-only record kept by the storekeeper showing receipts, issues and balance of each material. Values are not recorded on it. The record with both quantity and value is the stores ledger, maintained by the cost accounts department.

  1. AA record kept by the costing department showing quantity and value of each material received and issued
  2. BA quantity-only record kept by the storekeeper showing receipts, issues and balance of each item of materialCorrect
  3. CA document sent by the stores to the purchase department requesting purchase of material
  4. DA document authorising the issue of material from stores to a production department

Explanation

A bin card is maintained by the storekeeper and records only quantities of receipts, issues and balance for each material. The record showing both quantity and value is the stores ledger kept in the costing department, which is why the first option is wrong.

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