If indirect materials costing $37,500 that were not clearly linked with any specific production process or department were used during a reporting period, the following journal entry would be recorded in the process costing system:
$\begin{array}{llr}
\text { Factory Overhead} &37,500\
\text { Raw Materials Inventory } &&37,500\
\end{array}$

Question

If indirect materials costing $37,500 that were not clearly linked with any specific production process or department were used during a reporting period, the following journal entry would be recorded in the process costing system:
$\begin{array}{llr}
  \text {  Factory Overhead} &37,500\
 \text { Raw Materials Inventory } &&37,500\
\end{array}$

Quizplus · Accepted Answer

This journal entry correctly records the indirect materials used in the production process by debiting the Factory Overhead account and crediting the Raw Materials Inventory account.

If Indirect Materials Costing $37,500 That Were Not Clearly Linked Factory Overhead37,500 Raw Materials Inventory 37,500\begin{array}{llr} \text { Factory Overhead} &37,500\\ \text { Raw Materials Inventory } &&37,500\\\end{array} Factory Overhead Raw Materials Inventory ​37,500​37,500​

If Indirect Materials Costing $37,500 That Were Not Clearly Linked $\begin{array}{llr} \text { Factory Overhead} &37,500\\ \text { Raw Materials Inventory } &&37,500\\\end{array}$