Uniq Works Purchased Raw Materials Amounting to $122,000 on Account

question 170

Multiple Choice

Uniq Works purchased raw materials amounting to $122,000 on account and $19,000 for cash. The materials will be used to manufacture upholstery for furniture manufacturers on a contract basis. Which of the following journal entries correctly records this transaction?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Payable } & 122,000 & \\
• \hline \text { Cash } & 19,000 & \\
• \hline \text { Raw Materials Inventory } & & 141,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Finished Goods Inventory } & 141,000 & \\
• \hline \text { Accounts Payable } & & 141,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Work-in-Process Inventory } & 141,000 & \\
• \hline \text { Accounts Payable } & & 141,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Raw Materials Inventory } & 141,000 & \\
• \hline \text { Cash } & & 19,000 \\
• \hline \text { Accounts Payable } & & 122,000 \\
• \hline
• \end{array}\]

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