If Indirect Materials Costing $37,500 That Were Not Clearly Linked

question 203

True/False

If indirect materials costing $37,500 that were not clearly linked with any specific production process or department were used during a reporting period,the following journal entry would be recorded in the process costing system:

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Definitions:

Sales Taxes Payable

Current liabilities on a company’s balance sheet, representing taxes collected from customers on behalf of governmental authorities which are yet to be remitted.

Credited

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.

Future Payments

Obligations that are due to be paid at a future date.

Liabilities

Debts or obligations that arise during the course of business operations, which must eventually be paid off or settled.