In a process costing system,direct material costs incurred are recorded:
A)Indirectly to a Work in Process Inventory account from Factory Overhead.
B)Indirectly to a Finished Goods Inventory account from Factory Overhead.
C)Directly to a Work in Process Inventory account.
D)Directly to a Finished Goods Inventory account.
E)Directly to a Cost of Goods Sold account.

Question

Quizplus · Accepted Answer

In a process costing system, direct material costs are directly recorded to a Work in Process Inventory account because they are added to the products as they move through the production process. Indirect costs, such as factory overhead, are allocated to the inventory accounts using a predetermined allocation rate. Therefore, choices A, B, D, and E are not correct.

In a Process Costing System,direct Material Costs Incurred Are Recorded