The Entry to Record the Use of Direct Materials in Production

question 121

Multiple Choice

The entry to record the use of direct materials in production would include a

• A)debit to Finished Goods Inventory.
• B)debit to Raw Materials Inventory.
• C)debit to WIP Inventory.
• D)credit to Finished Goods Inventory.

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Definitions:

Materials Received

Refers to the quantity and cost of raw materials received by a company for use in production during a specific period.

Work In Process Inventory

Refers to the cost of unfinished goods in the manufacturing process.

Accumulated Costs

Total expenses or investments gathered over a period, which may include fixed, variable, direct, and indirect costs.

Raw Materials Used

Resources consumed in the production process to create goods and services.