Question

When materials are requisitioned for use in production in a job-order costing firm, the cost of materials is added to the a.raw materials account. b.work-in-process account. c.finished goods account. d.accounts payable account. e.cost of goods sold account.

Answer 1

Answer:

b.work-in-process account.

Explanation:

When materials are requisitioned for use in production in a job-order costing firm, the cost of materials is added to the work-in-process account.

Following journal Entry is passed.

DR.     Work in process               xxx

CR.      raw Material Inventory    xxx

As work in process is debited in the above transaction, the cost of material is being added to it.