The journal entry to record the issuance of direct material into production includes

Question

Quizplus · Accepted Answer

Issuance of direct materials into production is recorded by debiting Work in Process Inventory, as these materials are used in the manufacturing process and become part of the work in process inventory. Debiting Raw Materials Inventory would be incorrect as this inventory account is used to record the cost of the raw materials that have been purchased but not yet used in production. Debiting Finished Goods Inventory would be incorrect as finished goods inventory is used to record the cost of completed products that have been produced but not yet sold. Debiting Cash would be incorrect as this is not a cash transaction, but rather an inventory transaction.

The Journal Entry to Record the Issuance of Direct Material