The journal entry to record indirect materials used in production is to:

• A. Debit Factory Overhead and credit Raw Materials Inventory
• B. Debit Finished Goods Inventory and credit Raw Materials Inventory
• C. Debit Work in Process Inventory and credit Raw Materials Inventory
• D. Debit Raw Materials Inventory and credit Factory Overhead

Answer: (A)

Verified step by step guidance

1. Understand the concept of indirect materials: Indirect materials are materials used in production that cannot be directly traced to specific products. These costs are typically included in factory overhead.
2. Recognize the accounts involved: Factory Overhead is an account used to accumulate indirect costs related to production, while Raw Materials Inventory represents the cost of materials available for use in production.
3. Determine the impact of using indirect materials: When indirect materials are used, their cost is transferred from Raw Materials Inventory to Factory Overhead, reflecting their consumption in the production process.
4. Identify the correct journal entry: To record the use of indirect materials, you need to debit Factory Overhead (to increase the account) and credit Raw Materials Inventory (to decrease the account).
5. Ensure proper classification: This journal entry ensures that indirect material costs are correctly classified as part of overhead costs, which will later be allocated to products during the production process.