Asked by Kaylan Hager on May 27, 2024
Verified
When a process cost accounting system records the purchase of materials, the materials account is credited.
Process Cost Accounting
Process cost accounting is a method used to allocate production costs to units of output in continuous or repetitive manufacturing processes.
Materials Account
The materials account is used in accounting to track the cost of raw materials that are either in stock or used during the manufacturing process.
- Gain an understanding of the treatment of indirect materials in the context of process costing methodologies.
Verified Answer
KU
K U F A GAMINGMay 27, 2024
Final Answer :
False
Explanation :
When a process cost accounting system records the purchase of materials, the Materials account is debited to reflect the increase in assets.
Learning Objectives
- Gain an understanding of the treatment of indirect materials in the context of process costing methodologies.
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