The journal entry to issue $500 of direct materials and $30 of indirect materials to production involves debit(s)to the:

Question

Quizplus · Accepted Answer

Direct materials are debited to the Work-in-Process account as they are a direct cost of producing the product. Indirect materials are debited to the Manufacturing Overhead account as they are a manufacturing cost that cannot be easily traced to a specific product. Therefore, the journal entry would be a debit to Work-in-Process Inventory for $500 and a debit to Manufacturing Overhead for $30.

The Journal Entry to Issue $500 of Direct Materials and $30