The entry to record the use of direct materials in production would include a

Question

Quizplus · Accepted Answer

The use of direct materials in production is accounted for as a debit to Work-in-Process (WIP) inventory, which reflects the cost of the goods that are currently in the process of being produced. Option B is incorrect because it would be appropriate if raw materials were being purchased or received, not used in production. Option C is incorrect because finished goods inventory represents the cost of completed goods that have not yet been sold, so it would not be affected by the use of direct materials in production. Option D is incorrect because it represents a credit, which would reduce the balance in finished goods inventory, and does not reflect the cost of the materials used in production.

The Entry to Record the Use of Direct Materials in Production