Question

What is the first step in recording the requisition of direct materials?

a) Analyzing financial statements
b) Documenting production output
c) Reconciling bank statements
d) Preparing income statements

Answer 1

The first step in recording the requisition of direct materials is documenting production output through a materials requisition form.

Step-by-step explanation:

The first step in recording the requisition of direct materials is not related to financial statement analysis, bank reconciliation, or income statement preparation. Instead, it involves documenting production output. In the context of accounting and inventory control, this documentation refers to creating a materials requisition form or slip that formally requests the transfer of materials from the storage area to the production floor. This form typically includes details such as the type and quantity of materials requested, the job or process they will be used for, and authorization signatures.