The Cost of Direct Materials Used in Production Is Recorded

question 242

Multiple Choice

The cost of direct materials used in production is recorded as a:

• A)credit to manufacturing overhead.
• B)credit to work in process inventory.
• C)credit to raw materials inventory.
• D)credit to direct materials expense.

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Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership's value in the business.

Major Account Groups

Categories used in financial accounting to organize and summarize the financial activities of a business.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim against the company assets.

Drawing

An account used to record the funds withdrawn from a business by its owner for personal use, reducing the owner's equity.