Concept explainers
Treatment of Direct material/ Indirect material:
The Material used in the manufacturing process is in the form of direct material (which is directly identified in the product) and indirect material used (which is indirectly consumed and not directly identified in the product). The Cost of Direct material is charged directly to work in process inventory by debiting the in process account and crediting the raw material inventory account.
And the indirect material issued is charged to manufacturing
Requirement:
The
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Horngren's Accounting (11th Edition)
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