The journal entry to issue $600 of direct materials and $40 of indirect materials involves a debit to

Question

Quizplus · Accepted Answer

Direct materials are directly used in the production process and as such are debited to the Work in Process Inventory account, while indirect materials are treated as manufacturing overhead and debited to the Manufacturing Overhead account. Hence, the journal entry to issue $600 of direct materials and $40 of indirect materials involves a debit to Work in Process Inventory for $600 and a debit to Manufacturing Overhead for $40. Therefore, option D is the correct answer.

The Journal Entry to Issue $600 of Direct Materials and $40