Raw Material Inventory is credited and Work-in-Process Inventory is debited when raw material is transferred to production.

Question

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Raw Material Inventory is considered a liability to the company until it is used in the production process. When the raw material is transferred to production, it becomes a cost of goods sold and is debited to Work-in-Process Inventory, while Raw Material Inventory, as a liability, is credited.

Raw Material Inventory Is Credited and Work-In-Process Inventory Is Debited