PRC-1 · Chapter 7 · Question 92 of 100
During a month, a manufacturing business issued Rs. 4.9 million of indirect materials (like factory cleaning supplies) to the factory. What is the correct double entry for this issue?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Dr. Production Overheads Rs. 4.9m, Cr. Materials Control Rs. 4.9m
Explanation
Indirect materials cannot be directly traced to specific units, so they are transferred from stores (crediting Materials Control) into the factory overhead pool (debiting Production Overheads).
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