Cost Accounting (Chapter 3)

Front 1

Storeroom supervisor

Back 1

Responsible for the protection of the materials in the storeroom, and for the identification of the materials.

Front 2

True

Back 2

True or False

Materials are stored in a systematic manner in bins, on racks, or on shelves.

Front 3

Bin tag

Back 3

Attached to each bin or rack.

Is an informal record showing the quantities of materials received, issued and on hand at all times.

Front 4

Materials requisition

Back 4

Indicates the quantity, material number, description, and job number to which the materials are to be charged.

Front 5

Material ledger card

Back 5

Serves as a perpetual inventory record.

Is a subsidiary ledger which is verified against the materials account in the general ledger.

Front 6

True

Back 6

True or False

At the end of the accounting period, the balance on the materials ledger card should equal the balance of the Materials account.

Front 7

Cost clerk

Back 7

Journalizes the transaction in a special journal.

Front 8

Materials requisition journal

Back 8

Shows how the two typical entries will appear in the materials requisition journal.

Front 9

True

Back 9

True or False

Special journals are often used to improve the efficiency of the journalizing process.

Front 10

Departmental overhead analysis sheet

Back 10

It is where all indirect manufacturing expenses are posted from a requisition.

It assess if the application rate used is correct.

Front 11

Return shipping order

Back 11

Prepared by the purchasing agent, authorizing the return of materials.

Prepared together with debit memorandum in triplicate.

Front 12

True

Back 12

True or False

A computerized system facilitates to update inventory records, simplifies processing purchase orders, and provides effective internal control system for materials issuance.

Front 13

True

Back 13

True or False

Materials are to be issued only upon receipt of materials requisition and recorded on the materials ledger card, materials requisition journal, and job cost sheet or departmental overhead analysis sheet.

Front 14

True

Back 14

True or False

Perpetual inventories system should be used to record and control both the receipts and issues of materials.