The journal entry to record the use of direct materials in Processing Department #1 would include a debit to Raw Materials Inventory.

Question

Quizplus · Accepted Answer

The journal entry to record the use of direct materials in a processing department would include a debit to Work in Process (WIP) Inventory for Processing Department #1, not Raw Materials Inventory. Raw Materials Inventory would be credited to reflect the decrease in raw materials.

The Journal Entry to Record the Use of Direct Materials