When direct materials are used: Multiple Choice Manufacturing Overhead is debited. Raw Materials Inventory is debited. Cost of Goods Sold is debited. Work in Process Inventory is debited.

Question

Social Studies

Cristopher Liu

3 June, 21:17

When direct materials are used: Multiple Choice Manufacturing Overhead is debited. Raw Materials Inventory is debited. Cost of Goods Sold is debited. Work in Process Inventory is debited.

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Viviana Spears · Answer 1

When direct materials are used, the Raw Materials Inventory account is debited.

Explanation:

In the operation of production, the raw material is the most crucial factor which is listed under the raw material inventory head. When this material is put to use, the material has to be recorded to have gone out from the inventory. Hence, once the raw material goes for production, the raw material inventory account is debited as raw material falls under the mentioned head.