Question

What is the chronological order of the material cost flows through the subsidiary records? a. Materials Ledger Card, Receiving Reports, Requisitions, Job Cost Sheets Requisitions, Job Cost Sheets, Receiving Reports, b. Materials Ledger Card Receiving Reports, Materials Ledger Card, Requisitions, Job Cost Sheets Job Cost Sheets, Receiving Reports, c. Materials Ledger Card, Requisitions Receiving Reports, Requisitions, d. Materials Ledger Card, Job Cost Sheets

Answer 1

The correct order of material cost flow through subsidiary records is: Receiving Reports, Materials Ledger Card, Requisitions, and then Job Cost Sheets. This order ensures precise tracking from receipt to allocation of material costs in a business setting.

Step-by-step explanation:

The chronological order of the material cost flows through the subsidiary records is crucial in accounting and cost management. This process is significant within Business and Accounting studies. The correct sequence, when tracking the flow of material costs, generally starts from the initiation of the purchase order to the final allocation of costs to specific jobs or products.

The chronological order of material cost flow is:

1. Receiving Reports: Documentation of the materials received by the business.
2. Materials Ledger Card: An updated record of the inventory showing all movements and the current balance after receipt of materials.
3. Requisitions: Internal documents requesting the transfer of materials to production.
4. Job Cost Sheets: Records where the costs of materials requisitioned are allocated to specific jobs or products.

Accountants and cost managers follow this order to ensure accuracy in cost allocation and to maintain proper control over inventory.

Answer 2

The correct order is option B.

Step-by-step explanation:

As the order is in which the items are in the process of the subsidiary is given as by option B.

Option A is not true as the step of receiving report is not at the start of the process.

Option C is not true, because all the steps are not included.

Option D is not true as well because all the steps are not included.