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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:### 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 xx
2. ☐ Raw Materials Inventory xx
Work in Process Inventory xx
3. ☐ Work in Process Inventory xx
Raw Materials Inventory xx
4. ☐ Work in Process Inventory xx
Finished Goods Inventory xx
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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 Inventory
To 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)
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