Requlred Information Learning Objective 20-P3: Record the flow of production costs in process costing. Raw materials purchases are debited to Raw materials inventory. Direct materials used are debited to Work in process inventory and credited to Raw materials inventory. Indirect materials used are debited to Factory overhead and credited to Raw materials inventory. Direct labor used is debited to Work in process inventory and credited to Factory wages payable. Indirect labor used is debited to Factory overhead and credited to Factory wages payable. Other actual factory overhead costs are debited to Factory overhead. Estimated overhead costs are allocated, using a predetermined overhead rate, to the different processes. This allocated amount is credited to the Factory Overhead account and debited to the Work in Process Inventory account for each separate process. As units are finished. Finished goods inventory is debited and Work in process is credited. Units sold are debited to Cost of goods sold and credited to Finished goods inventory. Accounting for Materlals Costs Knowledge Check 01 The journal entry to purchase materials on credit for factory use includes which of the following? (You may select more than one answer. Single cllek the box wlth the questlon mark to produce a check mark for a correct answer and double ellek the box wlth the questlon mark to empty the box for a wrong answer. Any boxes left wlth a questlon mark will be automatically graded as Incorrect.) Deblt to Raw Materlals Inventory Credit to Accounts Payable Credit to Raw Materlals Inventory Deblt to Work in Process Inventory Deblt to Accounts Payable Credit to Work in Process Inventory Credit to Cash Deblt to Cash Requlred Information Learning Objective 20-P3: Record the flow of production costs in process costing. Raw materials purchases are debited to Raw materials inventory. Direct materials used are debited to Work in process inventory and credited to Raw materials inventory. Indirect materials used are debited to Factory overhead and credited to Raw materials inventory. Direct labor used is debited to Work in process inventory and credited to Factory wages payable. Indirect labor used is debited to Factory overhead and credited to Factory wages payable. Other actual factory overhead costs are debited to Factory overhead. Estimated overhead costs are allocated, using a predetermined overhead rate, to the different processes. This allocated amount is credited to the Factory Overhead account and debited to the Work in Process Inventory account for each separate process. As units are finished. Finished goods inventory is debited and Work in process is credited. Units sold are debited to Cost of goods sold and credited to Finished goods inventory. Accounting for Materlals Costs Knowledge Check 01 The journal entry to purchase materials on credit for factory use includes which of the following? (You may select more than one answer. Single cllek the box wlth the questlon mark to produce a check mark for a correct answer and double ellek the box wlth the questlon mark to empty the box for a wrong answer. Any boxes left wlth a questlon mark will be automatically graded as Incorrect.) Deblt to Raw Materlals Inventory Credit to Accounts Payable Credit to Raw Materlals Inventory Deblt to Work in Process Inventory Deblt to Accounts Payable Credit to Work in Process Inventory Credit to Cash Deblt to Cash