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  • Mater

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    Phillip Dominguez
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    This document discusses material cost classification, including direct materials that are included in products and indirect materials that are not. It covers the functions of the store department in receiving, storing, issuing, and recording materials. The material control cycle is introduced, outlining procedures for controlling purchasing from purchase requisition to purchase invoice. Methods for recording material costs are examined like bin cards, materials requisition notes, and the materials inventory account. Finally, ways to control inventory levels like free inventory are presented.

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    This document discusses material cost classification, including direct materials that are included in products and indirect materials that are not. It covers the functions of the store department in receiving, storing, issuing, and recording materials. The material control cycle is introduced, outlining procedures for controlling purchasing from purchase requisition to purchase invoice. Methods for recording material costs are examined like bin cards, materials requisition notes, and the materials inventory account. Finally, ways to control inventory levels like free inventory are presented.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    13 views7 pages

    Mater

    Uploaded by

    Phillip Dominguez
    This document discusses material cost classification, including direct materials that are included in products and indirect materials that are not. It covers the functions of the store department in receiving, storing, issuing, and recording materials. The material control cycle is introduced, outlining procedures for controlling purchasing from purchase requisition to purchase invoice. Methods for recording material costs are examined like bin cards, materials requisition notes, and the materials inventory account. Finally, ways to control inventory levels like free inventory are presented.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 7

    MATERIALS COST

    Chapter 7

    1.Material Cost Classification:


    Direct Materials: Material which is a direct included in the product Indirect Materials: Material which not is a direct included in the

    product Direct Material Items Classified as Indirect Cost: Costs which have are very low unit cost and is not worth mentioning in direct cost such as a staple on a chapter

    2.Store Department
    Function of the store department

    Receipt of Goods
    Storage of Materials Issue of Materials Recording of Receipts and Issues

    3. Material Control Cycle


    Introduction

    Controlling of Purchasing
    Overview of Procedures Purchase Requisition Purchase Order Delivery note Goods Received Note Purchase Invoice

    4. Recording Materials Costs


    Bin Cards

    Materials Requisition Note


    Materials Returned Note Summary of Documents Used Materials Inventory Account

    5. Controlling Inventory Levels


    Introductino

    Free Inventory

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