Materials in the raw materials account do not become direct materials
A) until they are withdrawn from inventory for use in production.
B) until the finished product is sold.
C) until they are purchased from a vendor.
D) none of these are correct.

Question

Quizplus · Accepted Answer

Raw materials are not considered direct materials until they are actually used in the production process, which occurs when they are withdrawn from inventory. Simply purchasing or acquiring the raw materials does not automatically make them direct materials. The finished product being sold is also not relevant to the classification of raw materials as direct materials.

Materials in the Raw Materials Account Do Not Become Direct