When raw materials are used in production and are recorded in a job cost system:
A) Goods in Process is credited and Finished Goods is debited.
B) Direct Material and Indirect Material are debited and Goods in Process is credited.
C) Direct Material and Indirect Material are debited and Raw Materials Inventory is credited.
D) Goods in Process is debited and Raw Materials Inventory is credited.
E) Goods in Process and Factory Overhead are debited and Raw Materials Inventory is credited.

Question

Quizplus · Accepted Answer

When raw materials are used in production, the cost is transferred from Raw Materials Inventory to Goods in Process and Factory Overhead accounts, reflecting the use of both direct and indirect materials.

When Raw Materials Are Used in Production and Are Recorded