Ask Question
21 April, 22:28

The entry to record the use of direct materials in production would include a A. credit to Finished Goods Inventory. B. debit to WIP Inventory. C. debit to Raw Materials Inventory. D. debit to Finished Goods Inventory.

+3
Answers (1)
  1. 21 April, 22:45
    0
    B. debit to WIP inventory

    Explanation:

    The journal entry to record the usage of direct material in production is

    Work in Process Inventory Dr.

    To Raw Material Inventory

    (Raw materials consumed recorded)

    Raw material inventory is an asset. It's consumption should reduce it's balance. A debit increases an asset's balance while a credit reduces it's balance.

    Work in process, like raw material is an inventory account i. e an asset. A debit increases their balance whereas a credit reduces it.

    Here, raw materials i. e direct material have been issued for production, which would reduce their balance and increase the balance of work in process as finished goods are yet to be made.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The entry to record the use of direct materials in production would include a A. credit to Finished Goods Inventory. B. debit to WIP ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers