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In Job Costing, When Indirect Materials Are Requisitioned for a Job

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In job costing, when indirect materials are requisitioned for a job, the Raw Materials Inventory account is credited.


Definitions:

Cost of Goods Sold

The total cost of manufacturing or purchasing the products a company has sold during a specific period.

Return Ratio

A measure of the profitability or effectiveness of an investment, calculating how much returns are gained relative to the investment's cost.

Common Stockholders' Equity

The portion of a company's equity that is attributable to the holders of its common stock.

Leverage

The use of debt to increase the return on an investment.

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