When Raw Materials are purchased they are simply put into the Materials Account.
When the company needs to start working on them however, they will transfer the raw materials to the Work in Progress account which records the Direct Materials and Direct Labor that are used in the Production process. By Debuting this account they indicate that the materials in it have increased.
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True. Do not forget that the equilibrium quantity is found when the quantity demanded is equal to the quantity supplied, which must be where the two curves intersect.
