The journal entry to record the use of direct materials in Processing Department #1 would include a debit to WIP-Processing Department #1.

Question

Quizplus · Accepted Answer

Direct materials are considered a part of the conversion costs in a manufacturing environment. The use of direct materials in Processing Department #1 would increase the amount of work in process in that department, which is represented by the WIP-Processing Department #1 account. Therefore, the journal entry would include a debit to this account.

The Journal Entry to Record the Use of Direct Materials