ACCA MA Syllabus C. Cost Accounting Techniques - Material inventory a/c - Notes ^{3 / 22}

Material Inventory Account

Materials held in store are asset and are therefore recorded in the statement of financial position of a company.

Transactions relating to materials are recorded in the material inventory account.

Anything coming into the stores, will be debited to the materials control account, and anything leaving the stores will be credited to the materials control account.

It will look like this:

Material inventory a/c $000

Material purchased	100	Issues to production wip a/c	94
Materials returned to stores	5	Materials returned to suppliers	3
		Materials w/off - i/s	1
		Production overhead account - indirect material	5
		Closing inventory c/d	2
	105		105
Closing inventory b/d	2