Raw Materials Can Be Direct Materials,but NOT All Direct Materials

question 44

True/False

Raw materials can be direct materials,but NOT all direct materials need to be raw materials.

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Definitions:

Work In Process

Inventory that is currently being manufactured but is not yet complete.

Direct Materials

Direct materials refer to the raw materials that are directly incorporated into a finished product and are integral to its production, easily traceable to the goods being produced.

Raw Materials Purchased

The complete expense of raw materials purchased by a company for production purposes over a given period.

Raw Materials Inventories

Stocks of unprocessed materials that are used in the manufacturing process to produce finished goods.