When do materials in the raw materials account become direct materials?
A) when they are put into production
B) when they are returned to the supplier
C) when the production process is complete
D) when they are received from the supplier

Question

Quizplus · Accepted Answer

Raw materials become direct materials when they are put into production and used in the manufacturing process to create finished goods. Until that point, they remain as raw materials in the accounting system.

When Do Materials in the Raw Materials Account Become Direct