The Raw Materials Inventory account shows the cost of only direct materials purchased during the period.The Raw Materials Inventory account shows the cost of all materials purchased but not yet issued into production,and includes both direct and indirect material purchases.

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The first statement is partially correct, as the Raw Materials Inventory account shows the cost of direct materials purchased during the period. However, the second statement is incorrect as it implies that the Raw Materials Inventory account also includes indirect materials, which is not the case. The Raw Materials Inventory account only includes direct materials that are not yet issued into production.

The Raw Materials Inventory Account Shows the Cost of Only