Clarksen Company Uses a Process Costing System

question 218

Multiple Choice

Clarksen Company uses a process costing system.The company requisitioned $93,000 of materials for Department A and $67,000 of materials for Department D.The entry to record the use of the direct materials by these two departments is:

• A)Debit Raw Materials Inventory $160,000; credit Accounts Payable $160,000.
• B)Debit Work in Process Inventory-Dept.A $93,000; debit Work in Process Inventory-Dept.D $67,000; credit Raw Materials Inventory $160,000.
• C)Debit Factory overhead $160,000; credit Raw Materials Inventory $160,000.
• D)Debit Raw Materials Inventory-Dept.A $93,000; debit Raw Materials Inventory-Dept.D $67,000; credit Work in Process Inventory $160,000.
• E)Debit Work in Process Inventory-Dept.A $93,000; debit Work in Process Inventory-Dept.D $67,000; credit Accounts Payable $160,000.