A company which operates a batch costing system is fully integrated with the financial accounts. During a particular period materials worth - 30,000…

CA Intermediate · Cost and Management Accounting · PYQS · May 2025
A company which operates a batch costing system is fully integrated with the financial accounts. During a particular period materials worth - 30,000 and - 20,000 were issued to production and Factory Maintenance respectively. The following control A/cs are being maintained. (i) Store ledger control A/c. (ii) Work-in-progress control A/c. (iii) Production overhead control A/c. (iv) Finished goods control A/c. From the above information, identify which account/accounts will be debited to effectuate the issuance of materials:
(A) (i) & (ii)
(B) (ii) & (iii)
(C) (ii) & (iv)
(D) Only (i)

Suggested Answer and Working Notes:

Correct Answer: Option (B)

(ii) & (iii)

Topics: Overheads - Absorption Costing Method

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