Materials Ledger Card: Definition and Explanation
Costing means determining cost. Costing for materials involves studying different methods to calculate the cost of receipts, returns, and issues of materials. Better cost of the materials ledger cards is maintained for all items of materials.
The materials ledger card is also known as the store ledger card. It provides a continuous record of materials received and issued, as well as the balance of materials, at any time, both in terms of quantity and value.
Format/Specimen of Materials Ledger Card
The materials ledger card has three main parts, namely:
- Receipts
- Issued
- Balance
Receipts
When materials are purchased, they are recorded in the receipts section of the materials ledger card.
Issued
When materials are issued to production, they are recorded in the issued section of the materials ledger card.
Balance
The balance section of the materials ledger card shows the balance both in quantity and value. After every receipt of materials, the balance increases; after every issue, the balance decreases.
