JAMB Principles of Accounts 2001 Question 27

Question 27

Manufacturing Accounts

Lubricating oil and spare parts of machinery are examples of

  1. A.direct materials
  2. B.indirect materials
  3. C.indirect expenses
  4. D.direct expenses.
Show the answer and explanation

Answer: B (indirect materials)

Explanation

They are materials used up in production without forming part of the finished product, so they are indirect materials.