Using a process costing system,the journal entry to record the requisition of direct materials to be used in production includes:
A)a debit to Raw Materials Inventory
B)a debit to Manufacturing Overhead
C)a credit to Raw Material Inventory
D)a credit to Work in Process Inventory
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

A requisition of direct materials for production involves moving the cost of these materials from Raw Material Inventory to Work in Process Inventory, which is recorded as a credit to Raw Material Inventory to decrease its balance.

Using a Process Costing System,the Journal Entry to Record the Requisition