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JOB ORDER DIRECT MATERIALS COST

6 五月, 2015 - 17:10

A purchase requisition triggers a purchase order to a supplier from the purchasing department, and when the goods are delivered, a receiving report showing the quantity and condition of the goods. After verification, the material inventory account is debited. A materials requisition causes goods to be transferred from the storeroom or warehouse to the manufacturing department, and thereupon the materials inventory account is credited. A separate account is often maintained for each type of material.