The journal entry to record the issuance of direct materials into production includes:
A)a debit to Raw Materials Inventory.
B)a debit to Finished Goods Inventory.
C)a debit to Work in Process Inventory.
D)a debit to Cash.

Question

Quizplus · Accepted Answer

When direct materials are issued into production, they are added to the Work in Process Inventory account, which represents the goods that are currently in the production process. Therefore, the appropriate journal entry would include a debit to Work in Process Inventory. A debit to Raw Materials Inventory would be appropriate when the materials are originally purchased, not when they are issued into production. A debit to Finished Goods Inventory would be appropriate when the goods are completed and ready for sale. A debit to Cash would only be appropriate if the materials were purchased with cash.

The Journal Entry to Record the Issuance of Direct Materials