Accounting for Materials

An essential requirement of job cost accounting is that direct
materials and their cost must be traced to and identified with specific job or work order.
This segregation of materials cost by jobs or work orders is brought about by the use of
separate stores requisitions for each job or work order. Where a bill of material is
prepared, it provides the basis for the preparation of these stores requisitions. But when
the entire quantity of materials specified in the bill of materials is drawn in one lot or in
instalments, the bill itself could be made to serve as a substitute for the stores requisition.