PRC-1 · Chapter 7 · Question 91 of 100
During a month, a manufacturing business issued Rs. 20.2 million of direct materials to the factory. What is the correct double entry for this issue?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Dr. Work In Progress (WIP) Rs. 20.2m, Cr. Materials Control Rs. 20.2m
Explanation
Direct materials issued to production are transferred from the raw materials store (crediting Materials Control) directly into the manufacturing process (debiting Work In Progress).
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