The journal entry to record the use of direct materials in process costing is a debit to the Work in Process Inventory and a credit to the Materials Inventory.
What is process costing?
Process costing is a costing method for recording the costs of production and assigning them to products when goods are mass-produced.
In process costing, products and costs flow through different phases of production before completion.
To determine the production costs of products, process costing systematically captures the various costs at the different production stages.
Thus, the journal entry to record the use of direct materials in process costing is a debit to the Work in Process Inventory and a credit to the Materials Inventory.
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