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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