Question

For the following transactions described below, indicate which account should be debited and which account should be credited.

1. Direct materials are issued into production for a specific job

Answer 1

In this transaction, the account that should be debited is the Work in Process account, and the account that should be credited is the Raw Materials account.

Step-by-step explanation:

In this transaction, the account that should be debited is the Work in Process account, and the account that should be credited is the Raw Materials account.

When direct materials are issued into production for a specific job, it means that raw materials are being used in the production process. These raw materials are considered an expense in the production of the job, which is why they should be debited to the Work in Process account. At the same time, the raw materials account should be credited to reflect the decrease in inventory.

For example, if $100 worth of raw materials are issued into production for a specific job, the journal entry would be:

• Debit Work in Process: $100
• Credit Raw Materials: $100