Which of the following statements about materials is false?

Select one:

a. The use of direct materials gives rise to a debit to Work-in-Process Inventory.

b. Acquisitions of materials are normally charged to the Purchases account.

c. The use of indirect materials gives rise to a credit to Manufacturing Supplies Inventory.

d. Direct materials are accounted for in a different manner than indirect materials.

e. The use of indirect materials gives rise to a debit to Manufacturing Overhead

Question

Business

Jade Goodman

30 November, 18:31

Which of the following statements about materials is false?

Select one:

a. The use of direct materials gives rise to a debit to Work-in-Process Inventory.

b. Acquisitions of materials are normally charged to the Purchases account.

c. The use of indirect materials gives rise to a credit to Manufacturing Supplies Inventory.

d. Direct materials are accounted for in a different manner than indirect materials.

e. The use of indirect materials gives rise to a debit to Manufacturing Overhead

+2

Answers (1)

Know the Answer?

Erica Black · Answer 1

The correct answer is B

Explanation:

Purchase is the term which is defined as the bought or purchase of raw material that is necessary or required for the business in order to create or manufacture goods or services. So, that the product could be presented into the market for sale and the business could make profit from the sale of product.

So, the statement is false as the acquisition of material is charged to the purchase account.