If Department A uses $10,000 of direct materials and Department B uses $15,000 of direct materials,the following journal entry would be recorded by the process cost accounting system:
$\begin{array}{llr}
\text { Goods in Process Inventory, Department A } &10,000\
\text { Goods in Process Inventory, Department B } &15,000\
\text { Raw Materials Inventory } &25,000
\end{array}$

Question

If Department A uses $10,000 of direct materials and Department B uses $15,000 of direct materials,the following journal entry would be recorded by the process cost accounting system:
 $\begin{array}{llr}
  \text { Goods in Process Inventory, Department A  } &10,000\
 \text {  Goods in Process Inventory, Department B } &15,000\
 \text { Raw Materials Inventory } &25,000
\end{array}$

Quizplus · Accepted Answer

In process cost accounting, the cost of direct materials used by different departments is debited to their respective Goods in Process Inventory accounts and credited to the Raw Materials Inventory account.

If Department a Uses $10,000 of Direct Materials and Department