Pete's Plastic Products makes plastic toys and car parts. The injection molding machines leave behind plastic that can be ground up and used again in the next batch of production. The entry to record this includes

Question

Quizplus · Accepted Answer

The plastic that is left behind from the injection molding machines can be ground up and used again in the next batch of production. This means that it is still a raw material, and should be debited to Raw materials inventory. Additionally, the entry should include a credit to Work in process inventory, as the plastic is being used in the production process.

Pete's Plastic Products Makes Plastic Toys and Car Parts