In a process costing system,which of the following entries is prepared to transfer direct materials from storage to the cooking process?
A) Debit Direct Materials Inventory, Credit Work-In-Process Inventory-Cooking
B) Debit Direct Materials Inventory, Credit Accounts Payable
C) Debit Work-In-Process Inventory-Cooking, Credit Work-In-Process Inventory-Storage
D) Debit Work-In-Process Inventory-Cooking, Credit Direct Materials Inventory

Question

Quizplus · Accepted Answer

Direct materials are transferred from storage to the cooking process, so the inventory account that is debited should be the work-in-process inventory account for the cooking department. The inventory account that is credited should be the direct materials inventory account, since the materials are being used in the production process. Therefore, choice D is the correct entry.

In a Process Costing System,which of the Following Entries Is