The Cost of Direct Materials Is Assigned to a Job

question 115

Multiple Choice

The cost of direct materials is assigned to a job by the use of a source document known as a _____.

• A) time ticket
• B) materials requisition form
• C) schedule of cost of goods manufactured
• D) sales receipt
• E) All of these are correct.

---

Definitions:

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, based on a predetermined formula.

Work in Process

Inventory that includes partially completed goods that are still undergoing manufacturing or production processes.

Cost of Goods Sold

The total cost associated with producing the goods sold by a business, including materials, labor, and manufacturing overhead.

Direct Labour-hours

The total number of hours worked by employees directly involved in the production process.