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

question 18

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 direct materials and $13,000 indirect materials.
-How should Andrews record the purchase of raw materials for March?

• A)Debit Raw Materials Inventory $165,000; credit Accounts Payable $165,000
• B)Debit Work in Process Inventory $165,000; credit Raw Materials Inventory $165,000
• C)Debit Raw Materials Inventory $187,000; credit Cash $187,000
• D)Debit Accounts Payable $165,000; credit Raw Materials Inventory $165,000
• E)Debit Accounts Payable $187,000; credit Raw Materials Inventory $187,000

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Definitions:

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