Asked by Blake French on Jul 01, 2024
Verified
In process costing,all indirect materials are charged directly to Work in Process Inventory.
Indirect Materials
Materials used in the production process but not directly traceable to a finished product, often considered part of manufacturing overhead.
Work In Process Inventory
Goods partially completed in the manufacturing process; they are not yet finished products but have moved beyond the raw materials stage.
- Understand the principles of process costing and its application in different departments.
- Apply understanding of direct materials, direct labor, and factory overhead in the context of process costing.
Verified Answer
TC
Theresa ChidinmaJul 03, 2024
Final Answer :
False
Explanation :
In process costing, indirect materials are usually charged to a separate account called Manufacturing Overhead or Factory Overhead, and then allocated or applied to the Work in Process Inventory based on a predetermined overhead rate.
Learning Objectives
- Understand the principles of process costing and its application in different departments.
- Apply understanding of direct materials, direct labor, and factory overhead in the context of process costing.
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