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

question 185

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 of direct materials and $13,000 of indirect materials.
-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.

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Definitions:

Ethical Decision Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

Consumers

Individuals or entities that purchase goods or services for personal use as opposed to resale or commercial purposes.

Business Ethics

A set of principles and moral values in business that guide behaviors and decision-making.

Correct Decisions

Choices or judgments that are accurate, effective, and based on appropriate consideration of facts and rational analysis.