When raw materials are used in production,their costs are transferred to the work in process inventory account as direct materials.

Question

Quizplus · Accepted Answer

This is because direct materials are materials that can be easily traced to the final product and are considered to be a part of the product's cost. Thus, when raw materials are used in production, their cost is transferred to the work in process inventory account as direct materials.

When Raw Materials Are Used in Production,their Costs Are Transferred