A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for a. Work in Process and Finished Goods b. Finished Goods and Cost of Goods Sold c. Work in Process and Factory Overhead d. Work in Process and Cost of Goods Sold

Question

Business

Anton Friedman

17 June, 09:37

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for a. Work in Process and Finished Goods b. Finished Goods and Cost of Goods Sold c. Work in Process and Factory Overhead d. Work in Process and Cost of Goods Sold

+2

Answers (1)

Know the Answer?

Payten Spears · Answer 1

a. Work in Process and Finished Goods

Explanation:

The summary of materials requisitions shows all request for raw materials used for production.

When raw materials are obtained, they go into the factory where production begins. Raw material is converted to finished goods which are then sold.

The inventory that represents raw materials received in the factory is Work in progress and finished goods.

So when transferring cost of materials it should be transfered to work in progress and finished goods, as these accurately represent the converted raw material recieved.