Question

A review of a company's Work-in-Process Inventory account found a debit for materials of $67,000. If all procedures were performed in the correct manner, this means that the firm:

Answer 1

This means that the direct materials usage was being accounted for the firm by also crediting the Raw-Material Inventory account.

Step-by-step explanation:

One of the types of journal entries for accounting for the direct materials usage in a manufacturing firms is as follows:

Debit Raw Materials account

Credit Raw-Material Inventory account

In this question, since the debit materials was debited for $67,000, and all procedures were performed in the correct manner, it implies that the direct materials usage was being accounted for by the firm by also crediting the Raw-Material Inventory account.