If Department Q uses $60,000 of direct materials and Department T uses $15,000 of direct materials,the following journal entry would be recorded by the process cost accounting system:
Goods in Process Inventory,Department Q 60,000
Goods in Process Inventory,Department T 15,000
Raw Materials Inventory 75,000

Question

Quizplus · Accepted Answer

This journal entry correctly records the transfer of the $60,000 of direct materials used in Department Q and the $15,000 of direct materials used in Department T from Raw Materials Inventory into Goods in Process Inventory.

If Department Q Uses $60,000 of Direct Materials and Department