Asked by Devin Usher on Jul 25, 2024
Verified
What journal entry should Andrew use to account for direct materials used in March:
A) Debit Raw Materials Inventory $141,000; credit Accounts Payable $141,000.
B) Debit Work in Process Inventory $141,000; credit Raw Materials Inventory $141,000.
C) Debit Work in Process Inventory $141,000; credit Accounts Payable $141,000.
D) Debit Finished Goods Inventory $22,000; credit Raw Materials Inventory $22,000.
E) Debit Raw Materials Inventory $153,000; credit Work in Process Inventory $153,000.
Direct Materials
Raw materials that are directly traceable to the manufacturing of a product and are considered variable costs, forming part of the inventory costs.
Raw Materials Inventory
The total cost of all component materials currently in stock that have not yet been used in work-in-process or finished goods production.
Work in Process Inventory
Work in process inventory consists of products that are in the production process but are not yet completed, representing a stage between raw materials and finished goods.
- Recognize and record the transactions for raw materials, work in process, and finished goods inventory.
Verified Answer
Learning Objectives
- Recognize and record the transactions for raw materials, work in process, and finished goods inventory.
Related questions
Colbeck Corporation Uses a Standard Cost System in Which Inventories ...
Lisser Corporation Uses a Standard Cost System in Which Inventories ...
Kahanaoi Corporation Is a Manufacturer That Uses Job-Order Costing ...
Janeway Corporation Uses a Job-Order Costing System and Has Provided ...
During December, Moulding Corporation Incurred $87,000 of Actual Manufacturing Overhead ...