In a job order cost accounting system, the entry to record the flow of direct materials into production is to
A) debit Work in Process, credit Materials
B) debit Materials, credit Work in Process
C) debit Factory Overhead, credit Materials
D) debit Work in Process, credit Supplies

Question

Quizplus · Accepted Answer

When direct materials are moved into production in a job order cost accounting system, the entry is to debit Work in Process (increasing the balance to reflect the cost of materials now being used in production) and credit Materials (decreasing the balance to reflect the materials leaving inventory).

In a Job Order Cost Accounting System, the Entry to Record