The costs of materials used in the production of a product are recorded in which one of the following accounts?
A)net sales
B)fixed costs
C)operating income
D)depreciation
E)cost of goods sold

Question

Quizplus · Accepted Answer

The costs of materials used in the production of a product are considered as part of the cost of goods sold. Cost of goods sold is the account used to record the direct cost of producing goods, which includes raw materials, labor, and overhead costs. This account is used to calculate the gross profit margin, which is calculated as net sales minus cost of goods sold.

The Costs of Materials Used in the Production of a Product