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

question 75

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 amount will Andrew debit to Work in Process Inventory for the month of March?

• A)$165,000
• B)$154,000
• C)$13,000
• D)$141,000
• E)$33,000

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Definitions:

Transfer Price

The price charged for goods or services transferred between departments, divisions, or subsidiaries of the same company, often used for accounting and tax purposes.

Valve Division

A specialized department or segment within a company focused on the production and sale of valves.

Outside Supplier

A third-party provider that delivers products or services to an organization, which the organization does not manufacture or create internally.

Variable Expenses

Expenditures that adjust in response to the operations of a company.