In a process costing system, direct material costs incurred are recorded: Select one: a. Indirectly to a Work in Process Inventory account from Factory Overhead. b. Indirectly to a Finished Goods Inventory account from Factory Overhead. c. Directly to a Work in Process Inventory account. d. Directly to a Finished Goods Inventory account. e. Directly to a Cost of Goods Sold account.

Question

Business

Lola Anderson

25 March, 04:09

In a process costing system, direct material costs incurred are recorded: Select one: a. Indirectly to a Work in Process Inventory account from Factory Overhead. b. Indirectly to a Finished Goods Inventory account from Factory Overhead. c. Directly to a Work in Process Inventory account. d. Directly to a Finished Goods Inventory account. e. Directly to a Cost of Goods Sold account.

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Answers (1)

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Meredith Clay · Answer 1

In process costing, direct material cost incurred are recorded directly to work-in-progress inventory account.

The correct answer is C

Explanation:

In process costing, the cost of direct material is usually posted to work-in-progress inventory account while the cost of indirect material is posted to manufacturing overhead account.