### Accounting Journal Entry Question**Current Attempt in Progress****Question 42 of 50***Which of the following is the correct journal entry to record direct materials put into production?*1. ☐ Finished Goods Inventory xx Work in Process Inventory xx2. ☐ Raw Materials Inventory xx Work in Process Inventory xx3. ☐ Work in Process Inventory xx Raw Materials Inventory xx4. ☐ Work in Process Inventory xx Finished Goods Inventory xx---In the context of accounting, this question seeks to evaluate the understanding of how to properly document the use of direct materials in the production process.#### Description of Options:- **Option 1:** - Debit: Finished Goods Inventory - Credit: Work in Process Inventory- **Option 2:** - Debit: Raw Materials Inventory - Credit: Work in Process Inventory- **Option 3:** - Debit: Work in Process Inventory - Credit: Raw Materials Inventory- **Option 4:** - Debit: Work in Process Inventory - Credit: Finished Goods InventoryTo record the movement of direct materials into production, the movement typically involves a debit to the Work in Process Inventory account and a credit to the Raw Materials Inventory account. This indicates that materials are being transferred from stored raw materials to work in process, which is a step before becoming finished goods.The correct option should therefore reflect this transaction appropriately in the journal entry:**Correct Answer:** Option 3- **Journal Entry:** - Debit: Work in Process Inventory (xx) - Credit: Raw Materials Inventory (xx)

Solution:- Preparation of journal entry to record direct material put into production as follows…

Which of the following is the correct journal entry to record direct materials put into production? Finished Goods Inventory XX Work in Process Inventory XX Raw Materials Inventory XX Work in Process Inventory XX Work in Process Inventory XX Raw Materials Inventory XX Work in Process Inventory XX Finished Goods Inventory XX

Which of the following is the correct journal entry to record direct materials put into production? Finished Goods Inventory XX Work in Process Inventory XX Raw Materials Inventory XX Work in Process Inventory XX Work in Process Inventory XX Raw Materials Inventory XX Work in Process Inventory XX Finished Goods Inventory XX

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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