Uniq Works Purchased Raw Materials Amounting to $126,000 on Account

question 18

Multiple Choice

Uniq Works purchased raw materials amounting to $126,000 on account and $16,000 for cash.The materials will be used to manufacture upholstery for furniture manufacturers on a contract basis.Which of the following journal entries correctly records this transaction?

• A) \(\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 126,000 & \\
• \hline \text { Cash } & 16,000 & \\
• \hline \text { Raw Materials Inventory } & & 142,000 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | c | r | r | }
• \hline \text { Finished Goods Inventory } & 142,000 & \\
• \hline \text { Accounts Payable } & & 142,000 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | c | r | r | }
• \hline \text { Work-in-Process Inventory } & 142,000 & \\
• \hline \text { Accounts Payable } & & 142,000 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | l | r | r | }
• \hline \text { Raw Materials Inventory } & 142,000 & \\
• \hline \text { Cash } & & 16,000 \\
• \hline \text { Accounts Payable } & & 126,000 \\
• \hline
• \end{array}\)

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