CA Inter P4 · Chapter 7 · Question 4 of 8
Under an integrated accounting system, the journal entry for direct material issued to production is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Dr Work-in-Progress Control A/c; Cr Stores Ledger Control A/c
Explanation
Direct material issued moves from stores into production, so Work-in-Progress Control is debited and Stores Ledger Control is credited. Indirect material issued would be debited to Factory Overhead Control instead.
More Cost Accounting Systems MCQs
- Q6Which of the following items appears only in the financial accounts and not in the cost accounts?
- Q7Profit as per financial accounts is ₹2,85,000. Factory overheads were under-absorbed in cost accounts by ₹14,000, administration overheads…
- Q8A major advantage of an integrated accounting system over a non-integrated system is that:
- Q1Under a non-integrated (cost ledger) accounting system, the account in the cost ledger that records the double entry for items coming from…
- Q2Profit as per cost accounts is ₹4,20,000. The following differences are noted: (i) factory overheads over-absorbed in cost accounts…