CAF-5 · Chapter 5 · Question 6 of 10
When direct raw materials are issued from the warehouse to the factory floor for manufacturing a specific product, which account is debited in the cost ledger?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Work in Process (WIP) Control Account
Explanation
Direct materials issued to the factory floor become part of the ongoing production process. Therefore, their cost is debited to the Work in Process (WIP) Control account.
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