When determining costs of jobs, how does a company account for indirect material?

Name: When determining costs of jobs, how does a company account for indirect material?
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

Indirect material is not directly used in the production of a product, so it is not included as a direct material cost. Instead, it is considered an overhead cost and included in Manufacturing Overhead. As it is used in production, it is transferred out of Raw Materials Inventory and into Manufacturing Overhead.

When Determining Costs of Jobs, How Does a Company Account