When direct materials are issued from inventory to production under a job order costing system,an increase is recorded in the
A)Overhead account.
B)Work in Process Inventory account.
C)Materials Inventory account.
D)Finished Goods Inventory account.

Question

Quizplus · Accepted Answer

When direct materials are issued from inventory to production under a job order costing system, they are recorded in the Work in Process Inventory account as they become part of the work in progress for a specific job. The Materials Inventory account would decrease as a result of the materials being used and the other accounts (Overhead and Finished Goods Inventory) are not affected by the issuance of direct materials.

When Direct Materials Are Issued from Inventory to Production Under