Which of the following is used to record direct materials, direct labour, and applied overhead costs at the time they are used?
A) Cost of Goods Sold
B) Raw Materials Inventory
C) Finished Goods Inventory
D) Work-in-Process Inventory

Question

Quizplus · Accepted Answer

Work-in-Process Inventory is used to record direct materials, direct labor, and applied overhead costs at the time they are used in the manufacturing process, before the products are completed and moved to finished goods inventory. Raw Materials Inventory records the cost of raw materials that have not yet been used in production. Finished Goods Inventory records the cost of completed products that have not yet been sold. Cost of Goods Sold records the cost of goods sold to customers.

Which of the Following Is Used to Record Direct Materials