The direct material costing Rs. 4000 has been used in mixing department. The correct journal entry would be
A)Direct materials Dr. and work in process-mixing department CR
B)Work-in -process-mixing department Dr and Direct materials Cr
C)Finished goods DR and Direct materials Cr
D)Mixing department Dr and Direct material Cr

Question

Quizplus · Accepted Answer

The correct journal entry for using direct materials in a production department involves debiting the Work-in-Process account for that specific department (in this case, the mixing department) to reflect the increase in costs due to the addition of materials, and crediting the Direct Materials account to reflect the decrease in inventory as those materials are used. This accurately tracks the flow of material costs into production.

The Direct Material Costing Rs