CAF-5 · Chapter 5 · Question 7 of 10
If raw materials are issued from the store but are to be used as general factory supplies (indirect materials) rather than for a specific product, which account should be debited?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Production Overheads Control
Explanation
Indirect materials (like lubricants or cleaning supplies) cannot be traced directly to a specific product. Therefore, when they are issued from the store, they are debited to the Production Overheads Control account instead of WIP.
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