Issuing and Costing Materials into Production:
To control the quantity and cost of
materials, supplies, and services requires a systematic and efficient system
of purchasing, recording, and storing. Equally necessary is a systematic and
efficient procedure for issuing materials and supplies.
Materials Requisitions:
The materials requisition, illustrated below,
is a written order to the storekeeper to deliver materials or supplies to
the place designated or to give the materials to the person presenting a
properly executed requisition. It is drawn by someone who has the authority
to requisition materials for use in the department. The authorized employee
may be a production control clerk, or department head, a supervisor, a group
leader, an expeditor, or a materials release analyst. In a computerized
system, the computer program will often prepare the requisition in the form
of a tabulating card.
The materials requisition is the basic form
used to withdraw materials from the storeroom. Its preparation results in
entries in the issued section of the materials ledger card and in postings
to the job order cost sheets, production reports or the various expense
analysis sheets for individual departments. All withdrawals result in debits
to work in process or to control accounts for factory overhead, marketing
expenses, or administrative expenses, and in credits to materials.
Materials Requisitioned Journal:
With the posting to the materials ledger
cards, the job order cost sheets, the production reports, and the expense
analysis sheets completed, it is still necessary to post the materials
withdrawals to the proper ledger control accounts. This task is greatly
facilitated by the use of a materials requisitioned journal. This journal is
a form of materials summary.
At the end of the month, the total of the
various columns are posted directly to the ledger accounts, except for the
sundries column from which items are posted individually.
Tabulating cards as materials requisitions:
Tabulating cards are convenient input or
output devices for computer operations to produce the card, the computer is
instructed by the console operator to perform certain materials issuance
transactions for jobs or products. The card serves as authority for the
storekeeper to issue the materials, internal computer operations will update
the material data bank and eventually produce output reports including
totals that will be entered in the general ledger accounts, unless those
accounts are also part of the EDP system.
Indirect materials or supplies for factory or
office use will also be stored in the inventory data bank of the computer.
When such materials are needed, a request will inform the computer as to
type, quantity, and requesting department. Supplies requisitioned for
marketing and administrative departments would be charged to their
respective departments.
Bill of Materials:
The bill of materials, a kind of master
requisition, is a printed or duplicated form that lists all the materials
and parts necessary for a typical job or production run. Time is saved and
efficiency is promoted through the use of a bill of materials. When a job or
production run is started, all the materials listed on the bill of materials
are sent to the factory or are issued on a prearranged time schedule. As the
bill of materials is a rather cumbersome medium for posting purpose,
however, data processing improves the procedure by simultaneously. Preparing
tabulating cards for materials requisitions. While the storekeeper issues
the materials as stated on the bill of materials, the tabulating cards can
be processed in the materials ledger section and in the cost department at
almost the same time as the materials are used in the factory. A computer
program will provide the print outs of the bill of materials and process the
information internally to update the accounting records.
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