When determining costs of jobs how does a company account for indirect materials?

A) It is added to work in process as used.
B) It remains part of raw materials inventory.
C) It is transferred out of raw materials into manufacturing overhead when used.
D) It is transferred out of raw materials into work in process as used.

Indirect Materials

Substances utilized during manufacturing that cannot be specifically associated with any single product, like machine lubricants.

Work in Process

Goods that are in various stages of the manufacturing process but are not yet completed, representing a component of a company's inventory.

Raw Materials Inventory

The stock of materials used in the manufacturing process before they are transformed into finished goods.