The Entry to Record the Purchase of Materials on Account

question 57

Multiple Choice

The entry to record the purchase of materials on account using a job order costing system would include a:

• A) debit to materials inventory.
• B) debit to accounts payable.
• C) debit to work in process inventory.
• D) credit to materials inventory.

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Definitions:

Balance Column Journal

A type of accounting record that includes columns for recording dates, details of transactions, and corresponding debit or credit balances.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to check the mathematical accuracy of the accounting entries.

Posting

The process of transferring accounting entries from the journal to the ledger accounts.

Account

A record summarizing all transactions related to a particular item in the financial statements.