Asked by Shanti Jones on Apr 30, 2024
Verified
In a job-order costing system, the use of direct materials previously purchased usually is recorded as a debit to:
A) Manufacturing Overhead.
B) Raw Materials inventory.
C) Work in Process inventory.
D) Finished Goods inventory.
Direct Materials
Raw materials that are directly traceable to the manufacturing of a product and are a significant component of finished goods.
Work in Process Inventory
Work in process inventory includes partially completed goods that are still in the production process at the end of a period.
- Analyze the flow of materials, labor, and overhead costs through Work in Process inventory to Finished Goods.
Verified Answer
MN
Mujuji NobelApr 30, 2024
Final Answer :
C
Explanation :
When direct materials that were previously purchased are used in production, the cost is transferred from Raw Materials Inventory to Work in Process Inventory. This reflects the materials being put into production.
Learning Objectives
- Analyze the flow of materials, labor, and overhead costs through Work in Process inventory to Finished Goods.