Both direct materials and indirect materials are

A) raw materials.
B) manufacturing overhead.
C) merchandise inventory.
D) sold directly to customers by a manufacturing company.

Indirect Materials

Supplies used in the production process but not directly traceable to a finished product, such as lubricants for machinery.

Direct Materials

Raw materials that are directly traceable and allocable to the production of specific goods or services.

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs to a production process for subsequent modification or transformation into finished goods.