When indirect materials are used in production,the Raw Materials Inventory account is credited.Process costing is used.

Question

Quizplus · Accepted Answer

In process costing, indirect materials are included in the cost of production and as they are used, they are credited to the Raw Materials Inventory account. This helps in determining the cost of goods manufactured and helps in better financial accounting. Therefore, the given statement is true.

When Indirect Materials Are Used in Production,the Raw Materials Inventory