Andrew Industries Purchased $165,000 of Raw Materials on Account During

question 37

Multiple Choice

Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials. How should Andrews journalize the purchase of raw materials for March?

• A) Debit Raw Materials Inventory $165,000; credit Accounts Payable $165,000
• B) Debit Work in Process Inventory $165,000; credit Raw Materials Inventory $165,000
• C) Debit Raw Materials Inventory $187,000; credit Cash $187,000
• D) Debit Accounts Payable $165,000; credit Raw Materials Inventory $165,000
• E) Debit Accounts Payable $187,000; credit Raw Materials Inventory $187,000

---

Definitions:

Command Economy

An economic system where the government makes all decisions on the production and consumption of goods and services.

Command Economy

An economic system where the government or a central authority makes all decisions regarding the production and distribution of goods and services.

Venezuela's Economy

The economic system of Venezuela, characterized by its heavy reliance on oil exports and recent experiences of hyperinflation and social upheaval.

Bolivarian Socialism

A political and economic ideology based on the visions of South American liberator Simón Bolívar, focusing on the redistribution of wealth, land reform, and nationalization of key industries.