When classification of overheads on some scientific and consistent basis is complete, overheads are regularly collected i.e. estimated understanding order code numbers allotted to them. For the collection of overhead expenses the following are some of the primary documents used:-
- Stores requisitions
- Job cards or tickets
- Invoices or purchase voucher
- Salary or pay bills
- Cash book
- Subsidiary records.
Indirect materials originate in store requisitions. Each stores requisitions note specifies the standing order number and the department for which the stores are drawn. The departmentalization is done at sources. A material issue analysis sheet is prepared from store requisitions. At the end of each month, the total of these items is charged or debited to Factory Overhead Control Account and credited to Stores Ledger Control Account.
Indirect labour is obtained in the first place, from the time cards and pay rolls. Wages paid to workers against each standing order number can be obtained from the time tickets or job cards. From the time tickets, the wages analysis sheet is prepared each month and at the end of the month, the total is debited to Factory Overhead Control Account and credited to the Wages account.
