In a job-order costing system, the use of indirect materials that have been previously purchased is recorded as a credit to:
A)Work in Process inventory.
B)Manufacturing Overhead.
C)Raw Materials inventory.
D)Finished Goods inventory.

Question

Quizplus · Accepted Answer

Indirect materials are recorded as a credit to Raw Materials inventory when they are used, as they are no longer part of the raw materials available for production.

In a Job-Order Costing System, the Use of Indirect Materials