ECONOMICS

Detailed explanation-1: -Indirect material expenses are accounted for or reported in manufacturing overhead, not in work-in-progress. This is because indirect materials costs are process-related costs that are utilized in production processes and are not traceable directly to each item or product. Therefore, the provided statement is false.

Detailed explanation-2: -Indirect materials are charged to specific jobs. When a job is completed, the goods are transferred from the production department to the finished goods warehouse and the journal entry would include a debit to Work in Process.

Detailed explanation-3: -Direct material and direct labor costs are debited to the Work In Process account. Any indirect material or indirect labor costs are debited to the Manufacturing Overhead control account, along with any other actual manufacturing overhead costs incurred during the period.

Detailed explanation-4: -Job costing is a costing method used to determine the cost of specific jobs, which are performed according to the customer’s specifications.

Detailed explanation-5: -Job order costing is a costing method which is used to determine the cost of manufacturing each product. This costing method is usually adopted when the manufacturer produces a variety of products which are different from one another and needs to calculate the cost for doing an individual job.