The cost of direct materials flow through all of the following accounts except:
A) Manufacturing Overhead.
B) Work in Process Inventory.
C) Finished Goods Inventory.
D) Cost of Goods Sold.

Question

Quizplus · Accepted Answer

Direct materials flow through Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold, as they are directly used in the production process and eventually become part of the finished goods or are expensed when used in production. Manufacturing Overhead, on the other hand, includes indirect costs such as factory rent, utilities, and depreciation, which do not directly relate to the cost of direct materials.

The Cost of Direct Materials Flow Through All of the Following