SELF-CHECK TEST:

 Questions:
1. What are the internal control procedures for purchasing accompanied in storing and
issuing materials?
2. Where does a material ledger card used for?
3. Why is it important to have a material requisition before issuing materials from the
storeroom?
4. Do principles of internal control need to reflect in the procedures of storing and issuing
materials?
5. Give some basic concepts to be followed by manufacturing companies in storing and
issuing raw materials.

 Multiple Choice Questions:

1. Entries made in Materials account in the general ledger are the following, except
a. Materials purchased
b. Materials issued
c. Materials returned
d. Materials reserved and on order

2. Indirect materials that cannot be charged to a specific job are posted from the
materials requisition to the a. Materials ledger card
b. Departmental overhead analysis sheet
c. Bin tag
d. Receiving report

3. No materials may be issued without a written document called the

a. Receiving report
b. Materials issued
c. Materials requisition
d. Material ledger card

4. The person who is responsible for the protection of the materials in the storeroom, and for
identification of the materials is the a. Storeroom clerk
b. Receiving clerk
c. Storeroom supervisor
d. Purchasing agent
5. Materials return to storeroom are recorded in the following documents, except
a. Bin tag
b. Returned materials report
c. Materials ledger card
d. Purchase order

6. The bin tag

a. is a record showing the vouchers issued
b. is an informal but carefully maintained record showing the quantities of
the materials received, issued, and on hand
 c. is a name tag used by employees for identification purposes
d. is a record of materials requisitions

7. After recording the materials requisition in the materials requisition journal, the cost clerk
post the data from the requisitions to the material section of the
a. Departmental overhead analysis sheet
b. Bin tag
c. Job cost sheet
d. Materials ledger card

8. What is the purpose of using a materials requisition journal?

a. To avoid losses due to thief
b. To avoid writing the many long and repetitious entries in issuing and using
materials
c. To avoid mathematical errors
d. To avoid error in journalizing the requisitions

9. The person who is responsible of recording the requisition in the materials ledger card is
the
a. Storeroom supervisor
b. Storeroom clerk
c. Purchasing agent
d. Accounting clerk

10. A materials requisition journal

a. Is a special journal where the issuance is journalized
b. Is a general journal where the requisition is journalized
c. Is a special journal where the purchase requisition is recorded
d. Is a special journal where the purchase orders are recorded