ECONOMICS

Detailed explanation-1: -Answer and Explanation: Tthe entry to record the use of direct materials in production would increase the work-in-process inventory account (with a debit entry) and decrease the raw materials inventory account (with a credit entry). Finished goods inventory is not involved in this transaction.

Detailed explanation-2: -The journal entry for direct materials, that is, materials that can be directly traced to products, is a debit to the work in process and a credit to the raw materials inventory accounts.

Detailed explanation-3: -For direct materials, debit the work in process inventory account and credit the raw materials inventory account. If the production process is so short that it doesn’t make sense to use a work in process account, debit the finished goods inventory instead.

Detailed explanation-4: -Raw materials of all types are initially recorded into an inventory asset account with a debit to the raw materials inventory account and a credit to the accounts payable account. When raw materials are consumed, the accounting treatment varies, depending on their status as direct or indirect materials.

Detailed explanation-5: -The purchase of direct materials requires a debit to (an increase in) direct materials inventory (stores control). This account is credited and work-in-process control is debited when direct materials are issued to a production department.