In a process costing system, the entry to record cost of materials assigned to a production department requires a debit to the Work in Process Inventory account for that department and a credit to the Raw Materials Inventory account.

Question

Quizplus · Accepted Answer

When cost of materials is assigned to a production department in a process costing system, the entry requires a debit to the Work in Process Inventory account for that department and a credit to the Raw Materials Inventory account. This is because raw materials become part of the work in process as they are used in the production process.

In a Process Costing System, the Entry to Record Cost