Materials requisition note
A materials requisition note is the internal document authorising stores to release raw materials to a specific job or department. It creates the paper trail a cost accountant uses to charge the materials issued to that cost object.
See it move
Job 118 needs 150 units of Material J. A materials requisition note authorises stores to release them, and FIFO prices the issue at 80 units from the opening batch at €5.00 (€400) plus 70 units from the newer delivery at €5.50 (€385), a total of €785 posted to Job 118's job cost sheet.
Check yourself
A stores ledger account for Material Z opens with a balance of 60 units at €7.00 each. A delivery of 340 more units arrives at €7.80 each. Production raises a materials requisition note for 200 units of Material Z for Job 305. Using FIFO to price the issue, what total cost should be charged to Job 305?