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 cost of direct and indirect material charged to production process.
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Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (11th Edition)
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