Describe the flow of materials in a process cost accounting system.

When raw materials are purchased, they are debited to Materials. When direct materials are needed in a production department, a materials requisition report is used to move the materials from the storeroom to the production department. Direct materials used are recorded with a debit to Work in Process Inventory for that department and a credit to Materials. Indirect materials used in a department are recorded with a debit to Factory Overhead and a credit to Materials.