ECONOMICS

Detailed explanation-1: -The work-in-process inventory account is debited when materials are requisitioned for a job, not when materials are purchased.

Detailed explanation-2: -Accounting for Raw Materials Inventory 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.

Detailed explanation-3: -Cost accounting is primarily concerned with accumulating information about product costs. When raw materials are purchased, the Work in Process Inventory account is debited.

Detailed explanation-4: -Direct labor is debited to the Work In Process inventory account and indirect labor is debited to the Manufacturing Overhead account. Typically, a liability account such as Salaries Payable is credited.

Detailed explanation-5: -When you initially purchase materials for use, you record the purchase in the accounting records at cost. This entry consists of a debit to raw materials inventory and a credit to accounts payable or cash, reports Accounting Tools. The entry increases the total inventory account.