CHAPTER 3
Questions: MULTIPLE CHOICES (THEORETICAL)
1) The person who is responsible for the protection of the materials in the storeroom, and for
identification of the materials is the:
a. Receiving clerk
b. Purchasing agent
c. Storeroom supervisor
d. Storeroom clerk
2) The bin tag:
a. Is an informal but carefully maintained record showing the quantities of the
materials received, issued and on hand.
b. Is a name tag used by employees for identification purposes.
c. Is a record of materials requisitions.
d. Is a record showing the vouchers issued.
3) No materials may be issued without a written document called the:
a. Materials requisition
b. Materials issued
c. Material ledger card
d. Receiving report
4) Materials requisition should indicate the following except:
a. Quantity
b. Material number
c. Job number
d. Purchase order number
5) The person who is responsible for recording the requisition in the materials ledger card is
the:
a. Storeroom supervisor
b. Storeroom clerk
c. Purchasing agent
d. Accounting clerk
6) A material ledger card should indicate the following except:
a. Each type of materials on hand
b. Quantity issued
c. Quantity received
d. Purchase order number
7) A material 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 id recorded
d. Is a special journal where the purchase orders are recorded
8) 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. Job cost sheet
b. Departmental overhead analysis sheet
c. Materials ledger card
d. Bin tag
9) What is the purpose of using a materials requisition journal?
a. To avoid writing the many long and repetitious entries involved in issuing and
using materials
b. To avoid error in journalizing the requisitions
c. To avoid mathematical errors
d. To avoid losses due to thief
10) Materials returned to storeroom are recorded in the following documents except:
a. Bin tag
b. Returned materials report
c. Materials ledger card
d. Purchase order
11) 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
12) 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
Questions: MULTIPLE CHOICES (COMPUTATIONAL)
1. The job cost sheet show the following data for Job 055 for the month of November, 2018:
Requisition Returned Materials Report
044 P31,920 039 P340
045 143 043 34
049 1592 048 103
150 2,933
154 338
What is the materials cost for Job 055?
a. P36,449
b. P35,450
c. P36,559
d. P36,926
2. During June 2018, Star Pools had requisitions totaling P44,810 for direct materials and
P4,880 for indirect materials. What is the entry to record the cost of materials requisition for the
month?
a. Work in Process 44,810
Manufacturing Overhead Control 4,880
Materials 49,690
b. Work in Process 44,810
Indirect Materials 4,880
Materials 49,690
c. Direct Materials 44,810
Indirect Materials 4,880
Materials 49,690
d. Manufacturing Overhead Control 4,880
Direct Materials 44,810
Materials 49,790
The materials ledger card shows the following units for Materials 9-48
Beginning balance 15,980
Purchases 6,600
Issued 13,050
3. Assuming the unit price of Materials 9-48 is P6.80, what is the cost of the ending
inventory of Materials 9-48?
a. P9,536.80
b. P9,550.80
c. P9,389.50
d. P5,936.80
4. During July 2018, Jump Products Company had returned P13,480 in direct materials and
P550 in indirect materials. What is the journal entry to record the cost of materials returned
to storeroom for the month?
a. Materials 14,030
Work in Process 13,480
Mfg. Overhead Control 550
b. Materials 14,030
Indirect Materials 13,480
Direct Materials 550
c. Materials 14,030
Work in Process 14,030
d. Materials 13,480
Direct Materials 13,480
5. On March 10, 2018 Olay Manufacturing Company returned materials costing P3,500 to its
supplier, Mars Supplies, Inc. What is the journal entry to record the materials returned?
a. Vouchers payable 3,500
Materials 3,500
b. Work in Process 3,500
Materials 3,500
c. Vouchers payable 3,500
Work in Process 3,500
d. Work in Process 3,500
Materials 3,500
PROBLEMS
Problem 3-1. Materials Ledger Entries
Euro Inc., manufactures furniture, Material W-64, costs P8.00. The following transactions took
place during the month of June 2018 for receipts, issuances, and returns of Materials W-64. The
recorder point for Material W-64 is 600 units, and the recorder quantity is 1,200 units.
June 1: Beginning balance 560
4: PO 310 1,300
10: R41 250
15: R49 1,150
16: RM48 220
19: R58 120
23: PO351 1,300
27: RSO24 100
29: R61 620
30: RM56 150
Required: Record the purchase orders, materials requisitions, returned shipping order, and
returned materials reports in the materials ledger card.
Problem 3-2: Journalization and Posting of Materials Transactions
The raw materials transactions of the Pool Corporation for the month of May 2018 are as
follows:
May 1: Beginning inventory of raw materials P155,500
4: Disbursements Voucher 051 for materials purchased 58,100
from Shaft Supply Company
8: Materials Requisition 041 for direct materials used on 26,150
Job 25
14: Materials Requisition 041 for direct materials used on 49,600
Job 26
17: Disbursements Voucher 052 for raw materials 56,400
purchased from Ace Corporation
21: Materials Requisition 043 for indirect materials used in 16,600
Finishing Department
24: Materials Requisition 044 for direct materials used on 32,100
Job 26
26: Disbursement Voucher 053 for raw materials purchased 39,800
from Handyman Company
29: Returned Shipping Order 028 for materials to 3,900
Handyman Company (voucher register has not been
closed)
Required:
1. Record the transactions in the materials requisition journal and the voucher register.
2. Total the columns in the journals and post the totals in the Materials account.
