Asked by Kassi Stolz on May 21, 2024
Verified
Describe the flow of materials in a process cost accounting system.
Process Cost Accounting
A method of accounting used in manufacturing environments to allocate costs to products based on the processes they go through.
- Explain the movement and monitoring of materials within a process costing system.
Verified Answer
TT
tolaa touchMay 25, 2024
Final Answer :
When raw materials are purchased, they are debited to Materials. When direct materials are needed in a production department, a materials requisition report is used to move the materials from the storeroom to the production department. Direct materials used are recorded with a debit to Work in Process Inventory for that department and a credit to Materials. Indirect materials used in a department are recorded with a debit to Factory Overhead and a credit to Materials.
Learning Objectives
- Explain the movement and monitoring of materials within a process costing system.
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