Question 1
Raw Materials Inventory increases when
◦ materials are purchased.
◦ materials are used.
◦ goods are sold.
◦ materials are transferred to Work in Process Inventory.
Question 2
Raw Materials Inventory decreases when
◦ materials are purchased.
◦ materials are transferred to Finished Goods Inventory.
◦ goods are sold.
◦ materials are used.