In job order costing, the journal entry to issue indirect materials to production should include which of the following?
A) Credit to Finished goods inventory
B) Credit to Materials inventory
C) Credit to Manufacturing overhead
D) Credit to Work in process inventory

Question

Quizplus · Accepted Answer

The correct journal entry for issuing indirect materials to production in job order costing involves crediting (decreasing) Materials inventory, as the materials are moving out of inventory and into production. The corresponding debit (increase) would typically be to Manufacturing overhead, reflecting the indirect costs being incurred.

In Job Order Costing, the Journal Entry to Issue Indirect