Wednesday 8 November 2023

In a traditional job order cost system, the issue of indirect materials to a production department increases Stores control.

 In a traditional job order cost system, the issue of indirect materials to a production department increases
Stores control.
Work in process control.
Factory overhead control.
Factory overhead applied.


 You Answered Correctly!
The issuance (use in production) of indirect materials results in a debit (increase) to factory overhead control. This account accumulates actual overhead cost incurrence. Actual overhead is not debited to work in process. Rather, work in process is debited to factory overhead applied.

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