To build an item from a bill of materials in the inventory ledger,you must -
A)identify the costs for each component used to build the item
B)create the item to be built in the inventory ledger and identify its components
C)identify the components used to build the item in the component ledger records
D)identify the inventory components used in the journal

Question

Quizplus · Accepted Answer

To build an item from a bill of materials in the inventory ledger, it is important to create the item to be built in the inventory ledger and identify its components. This will ensure that the components are reserved for the particular item and tracked accurately in the inventory ledger. Identifying the costs for each component used to build the item is important for costing purposes, but it is not necessary to build the item in the inventory ledger. Identifying the components used to build the item in the component ledger records is also important, but it is not sufficient to build the item in the inventory ledger. Identifying the inventory components used in the journal is too general and does not provide enough information to build the item in the inventory ledger.

To Build an Item from a Bill of Materials in the Inventory