In job-order costing,a debit to Work-in-process Inventory is used to record ________.
A)a sale of merchandise
B)a purchase of direct materials
C)the cost of goods completed
D)a requisition of direct materials for production area

Question

Quizplus · Accepted Answer

In job-order costing, Work-in-Process Inventory is debited when direct materials are requisitioned for use in production. This is because the cost of the direct materials becomes part of the cost of the work-in-process inventory. A is incorrect because the sale of merchandise would not be recorded in the work-in-process account. B is incorrect because the purchase of direct materials would result in a debit to Raw Materials Inventory, not Work-in-Process Inventory. C is incorrect because the cost of goods completed would be debited to Finished Goods Inventory, not Work-in-Process Inventory.

In Job-Order Costing,a Debit to Work-In-Process Inventory Is Used to Record