Direct materials used in production, direct labor, and applied overhead are charged to the:
A) raw materials account.
B) overhead account.
C) work in process account.
D) indirect labor account.

Question

Quizplus · Accepted Answer

Direct materials used in production, direct labor, and applied overhead are all related to the actual production process and are therefore charged to the work in process account. The raw materials account only includes the initial purchase of materials, not those that have been used in production. The overhead account includes all indirect costs, not just those directly related to production. The indirect labor account would only include indirect labor costs, not direct labor.

Direct Materials Used in Production, Direct Labor, and Applied Overhead