I.-The Materials Inventory account will be debited for the materials used in production II.-The Material Inventory account will be credited for materials purchases. a. Both statements are true b. Both statements are false c. Only statement I is true d. Only statement II is true

I.-The Materials Inventory account will be debited for the materials used in production II.-The Material Inventory account will be credited for materials purchases. a. Both statements are true b. Both statements are false c. Only statement I is true d. Only statement II is true

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 1CE

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

I.-The Materials Inventory account will be debited for the materials used in production II.-The Material Inventory account will be credited for materials purchases.

a. Both statements are true

b. Both statements are false

c. Only statement I is true

d. Only statement II is true

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