In a process costing system, direct material costs incurred are recorded:
A) Directly to a Finished Goods Inventory account.
B) Directly to a Cost of Goods Sold account.
C) Indirectly to a Finished Goods Inventory account from Factory Overhead.
D) Directly to a Work in Process Inventory account.
E) Indirectly to a Work in Process Inventory account from Factory Overhead.

Question

Quizplus · Accepted Answer

Direct material costs incurred are recorded directly to a Work in Process Inventory account in a process costing system, as the materials are being used in the production process.

In a Process Costing System, Direct Material Costs Incurred Are