If Department A uses $10,000 of direct materials and Department B uses $15,000 of direct materials,the following journal entry would be recorded by the process cost accounting system:
Goods in Process Inventory,Department A 10,000
Goods in Process Inventory,Department B 15,000
Raw Materials Inventory…………………. 25,000

Question

Quizplus · Accepted Answer

This journal entry correctly reflects the transfer of direct materials from Raw Materials Inventory to the Goods in Process Inventory accounts for both Department A and Department B. The total amount transferred is $25,000, which is the sum of the direct materials used by both departments.

If Department a Uses $10,000 of Direct Materials and Department