In a job-order costing system, the use of direct materials previously purchased usually is recorded as a debit to:
A)Manufacturing Overhead.
B)Raw Materials inventory.
C)Work in Process inventory.
D)Finished Goods inventory.

Question

Quizplus · Accepted Answer

When direct materials that were previously purchased are used in production, the cost is transferred from Raw Materials Inventory to Work in Process Inventory. This reflects the materials being put into production.

In a Job-Order Costing System, the Use of Direct Materials