Question

What would be the double entry for an issue of indirect production materials? Select one: a. Dr Material control account Cr Finished goods control account b. Dr Production overhead control a/c Cr Material control account c. Dr Work-in-progress control account Cr Material control account d. Dr Work-in-progress control account Cr Production overhead control a/c

Answer 1

Answer:

b. Dr Production overhead control a/c Cr Material control account.

Explanation:

Indirect material in the production process is defined as those input that cannot be directly traced to the product. They are different from direct materials like raw materials that are used to make the product.

Indirect materials are classified as overhead.

The double entry for issue of indirect materials is:

Debit production overhead

Credit raw materials inventory (material control account)

Note direct production materials and indirect production materials are credited to material material control account on purchase.