Journal Entry to Settle Cost Accounting part 08

 

📘 Journal Entry – Cost Accounting (Direct Materials Issued to Production)



Date: May 31, 2025
Description: Issued direct raw materials from the store to production department for Job #105.

AccountDebit (₹)Credit (₹)
Work-in-Progress (WIP) A/C₹50,000
Raw Materials Inventory A/C₹50,000

Narration: Being direct materials issued to production for Job #105 from raw materials inventory.

📌 Explanation:

  • Work-in-Progress (WIP) A/C is debited because the materials are now part of ongoing production.

  • Raw Materials Inventory A/C is credited to reduce the stock of raw materials.

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