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: -What is a work-in-progress journal entry? A work-in-progress journal entry is a record that accounting professionals use to document current assets on a company’s balance sheet. The items in this journal entry don’t include any raw materials or finished goods.

Detailed explanation-3: -Direct materials. Debit the work-in-process inventory account and credit the raw materials inventory asset account. Or, if the production process is brief, bypass the work-in-process account and debit the finished goods inventory account instead.

Detailed explanation-4: -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-5: -Purchasing raw materials increases the Raw Materials Inventory account on the debit side and using raw materials decreases the Raw Materials Inventory account on the credit side.