WHICH of the following is the correct journal entry as would appear in the cost books when Material (Direct) is issued to production?

CA Intermediate · Cost and Management Accounting · RTP · May 2025
WHICH of the following is the correct journal entry as would appear in the cost books when Material (Direct) is issued to production?
(A) Store Ledger Control A/c Dr. XXX To Work-in-Process Control A/c XXX
(B) Store Ledger Control A/c Dr. XXX To Production Overhead Control A/c XXX
(C) Production Overhead Control A/c Dr. XXX To Store Ledger Control A/c XXX
(D) Work-in-Process Control A/c Dr. XXX To Store Ledger Control A/c XXX

Suggested Answer and Working Notes:

Correct Answer: Option (D)

Work-in-Process Control A/c Dr. XXX To Store Ledger Control A/c XXX

Topics: Overheads - Absorption Costing Method

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