The journal entry to issue $530 of direct materials and $40 of indirect materials to production involves debit(s)to the:

Question

Quizplus · Accepted Answer

Direct materials are directly traceable to the finished product and are recorded as a debit to the work in process inventory account. Indirect materials, on the other hand, are not directly traceable to the finished product and are recorded as a debit to the manufacturing overhead account. Therefore, the journal entry to issue $530 of direct materials and $40 of indirect materials to production involves a debit to the work in process inventory account for $530 and a debit to the manufacturing overhead account for $40, for a total debit of $570. Hence, option B is the correct answer.

The Journal Entry to Issue $530 of Direct Materials and $40