In a process costing system, when raw materials are put into process, the cost of the materials is moved from
A)Work in Process to Finished Goods.
B)Finished Goods to Cost of Goods Sold.
C)Raw Materials to Work in Process.
D)Finished Goods to Work in Process.

Question

Quizplus · Accepted Answer

When raw materials are put into process, their cost is moved from the Raw Materials inventory account to the Work in Process inventory account in a process costing system. This is because the raw materials are being used to create a product, and their cost is thus part of the cost of the product being produced. Once the product is completed, its total cost will be transferred to the Finished Goods inventory account. The cost of the finished goods sold will then be transferred to the Cost of Goods Sold account when the product is sold.

In a Process Costing System, When Raw Materials Are Put