How is the cost of direct materials used in production recorded?

Question

Quizplus · Accepted Answer

The cost of direct materials used in production is recorded by crediting the Raw Materials Inventory account. This account reflects the cost of all direct materials that have been purchased but have not yet been used in production. When direct materials are actually used in production, the Raw Materials Inventory account is credited and the Work-in-Process Inventory account is debited for the same amount.

How Is the Cost of Direct Materials Used in Production