When direct materials are issued from inventory to production under a job order costing system, an increase is recorded in

Question

Quizplus · Accepted Answer

When direct materials are issued from inventory to production under a job order costing system, the cost of those materials is added to the Work in Process Inventory account to reflect the cost of the job in progress. The Overhead account is increased when indirect costs are incurred, Materials Inventory is decreased as materials are issued, and Finished Goods Inventory is increased once the job is completed.

When Direct Materials Are Issued from Inventory to Production Under