Respuesta :
That statement is true
The formula for work in process inventory is: (operating inventory goods in process + raw materials used during the period + direct labor during the period + factory overhead for period) - ending inventory
When we buy indirect materials, we will put it under factory overhead, so technically indirect materials will be directly charged to work in process inventory
The formula for work in process inventory is: (operating inventory goods in process + raw materials used during the period + direct labor during the period + factory overhead for period) - ending inventory
When we buy indirect materials, we will put it under factory overhead, so technically indirect materials will be directly charged to work in process inventory
I think the correct answer would be false. In process costing, all indirect materials are not charged directly to work in process inventory. Process costing is an accounting technique that accumulates and traces all direct costs and the indirect costs are being allocated depending on the manufacturing process. It is an operation costing where the cost of the product ate each stage of the processs is being evaluated.