Asked by Jacob Delgado on Apr 30, 2024
Verified
In a job-order costing system, the use of indirect materials would usually be recorded as a debit to:
A) Raw Materials.
B) Finished Goods.
C) Work in Process.
D) Manufacturing Overhead.
Indirect Materials
Indirect materials are materials used in the production process that do not directly become part of the final product and are not easily traceable to specific products or units produced.
Manufacturing Overhead
All manufacturing costs that are not direct materials or direct labor, such as maintenance, utilities, and depreciation on manufacturing equipment.
Work in Process
Goods that are in various stages of the production process but are not yet completed.
- Gain an understanding of the differences between direct and indirect costs, and the method by which they are accounted for in job costing.
Verified Answer
Learning Objectives
- Gain an understanding of the differences between direct and indirect costs, and the method by which they are accounted for in job costing.
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