ECONOMICS

Detailed explanation-1: -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.

Detailed explanation-2: -Explanation: Indirect materials form part of manufacturing overhead and relate to manufacturing costs that are not traceable to products. Actual amounts of manufacturing overhead used in production will be debited to the manufacturing overhead account to track the amount of actual overhead used.

Detailed explanation-3: -For indirect materials, debit the overhead account and credit the raw materials inventory asset account. At the end of the accounting period, the balance of the overhead account is allocated to the cost of goods sold and ending inventory.

Detailed explanation-4: -Requisitioning Materials Record indirect materials, materials that cannot be directly traced to products, as a debit to the manufacturing overhead account and a credit to raw materials inventory.

Detailed explanation-5: -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.