If the indirect materials cost for a reporting period was $37,500,the following journal entry would be recorded by the process cost accounting system:
$\begin{array}{llr}
\text { Factory Overhead } &37,500\
\text { Raw Materials Inventory} &&37,500\
\end{array}$

Question

If the indirect materials cost for a reporting period was $37,500,the following journal entry would be recorded by the process cost accounting system:
 $\begin{array}{llr}
  \text { Factory Overhead } &37,500\
 \text {  Raw Materials Inventory} &&37,500\
\end{array}$

Quizplus · Accepted Answer

The statement is true as a journal entry would be recorded to capture the indirect materials cost in the process cost accounting system.

If the Indirect Materials Cost for a Reporting Period Was Factory Overhead 37,500 Raw Materials Inventory37,500\begin{array}{llr} \text { Factory Overhead } &37,500\\ \text { Raw Materials Inventory} &&37,500\\\end{array} Factory Overhead Raw Materials Inventory​37,500​37,500​

If the Indirect Materials Cost for a Reporting Period Was $\begin{array}{llr} \text { Factory Overhead } &37,500\\ \text { Raw Materials Inventory} &&37,500\\\end{array}$