The journal entry to record the use of direct materials in process costing is to: Multiple choice question. debit Raw Materials Inventory and credit Work in Process Inventory. debit Work in Process Inventory and credit Raw Materials Inventory. debit Raw Materials Inventory and credit Factory Overhead. debit Factory Overhead and credit Raw Materials Inventory.

debit Work in Process Inventory and credit Raw Materials Inventory

Explanation:

Inventory is an asset and a debit to an asset is an increase in that asset while a credit to an asset is a decrease in the value of the asset.

Direct material is an example of a raw material and as such when used in processing, the account balance reduces while work in progress which is the next product in the processing of raw materials increases.

Hence going by the principles stated earlier, the journal entry to record the use of direct materials in process costing is to debit Work in Process Inventory and credit Raw Materials Inventory.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total