MANAGERIAL ACCOUNTING CONCEPTS AND PRINCIPLES参考.ppt

Completed jobs are transferred from the goods in process inventory account to the finished goods inventory account. We record the increase in finished goods with a debit and decrease the goods in process with a credit. When the jobs are sold, we reduce the finished goods inventory account with a credit. Cost of goods sold is an expense account that is recorded with a debit. End of Chapter 19. When materials are needed for a job, the production manager, C. Luther, prepares a materials requisition and sends it to the materials manager. The materials manager, M. Bateman, will not release materials from the materials storage facility without this authorization. In addition to the proper signature authorizing the transfer of materials, the job number of the job where the material is to be used is noted on the requisition. Materials requisitions are sequentially numbered just like checks in a checkbook This feature enhances the control of materials use. The requisition also contains a description of the material along with the inventory stock number. When material is transferred from the materials storage facility, an accounting entry is made to reduce the materials inventory balance. The materials requisition is the source document supporting the accounting entry, which we will see in a subsequent slide. The materials ledger card is a perpetual inventory record of the material M-347. This record may be a paper record, but most likely it is a computerized file. Here we see that $225 of material M-347 has been issued on materials requisition R-4705. This entry on the ledger card reduces the inventory balance from $675 to $450. Here we see the summary information for the material used on Job B15 entered on the job cost sheet. If additional information about this material is needed, it can be found on materials requisition R-4705. Labor cost entered on the job cost sheet is summarized from an employee’s time ticket. Production managers use labor time tickets to a