ECONOMICS

Detailed explanation-1: -The debit to Factory Overhead for the cost of indirect materials is obtained from the summary of the material requisitions. Cost accounting systems measure, record, and report product costs. The direct labor costs and factory overhead costs incurred by a production department are referred to as conversion costs.

Detailed explanation-2: -The entry to record the indirect material is to debit manufacturing overhead and credit raw materials inventory.

Detailed explanation-3: -Answer and Explanation: True, when indirect materials are issued to production, they are debited to manufacturing overhead and the Raw Materials Inventory account is credited. Indirect materials are materials that are used in the production process but cannot be directly traced to a cost object.

Detailed explanation-4: -Requisitioning Materials Company accountants must account for direct and indirect materials separately. The journal entry for direct materials, that is, materials that can be directly traced to products, is a debit to the work in process and a credit to the raw materials inventory accounts.

Detailed explanation-5: -Answer: a.) Manufacturing Overhead. Explanation: When indirect materials are used, the manufacturing overhead account is debited and the raw material inventory account is credited.