When a company uses direct materials, the amount of the debit to Work in Process Inventory is based on the standard quantity of the materials that should have been used times the standard price per unit of the materials.

Question

Quizplus · Accepted Answer

This is true. Work in Process Inventory is debited for the cost of direct materials used in production, which is determined by multiplying the standard quantity of materials by the standard price per unit. This helps to ensure that the inventory and cost of goods sold accounts accurately reflect the cost of production.

When a Company Uses Direct Materials, the Amount of the Debit