Question

In either a job order or a process costing system, credits to the Materials Inventory account represent: Group of answer choices The cost of materials relating to finished goods. The cost of unused materials returned to the inventory. The cost of materials purchased during the period. The cost of materials placed into production.

Answer 1

Answer:

The cost of materials placed into production.

Explanation:

When the cost of material placed into production, the journal entry is

Work in process Dr XXXXX

      To Material inventory XXXXX

(Being the cost of material used is recorded)

The formula to compute the cost of material placed is shown below:

= Beginning raw material inventory + purchase made during the year - ending raw material inventory

So while recording this transaction we debited thee work in process and credited the material inventory