Under a Backflush Costing System, the Journal Entry to Purchase

question 13

Multiple Choice

Under a backflush costing system, the journal entry to purchase raw materials on account is:

• A) debit work in process and credit accounts payable.
• B) debit raw materials and credit cash.
• C) debit raw and in-process inventory and credit accounts payable.
• D) debit cost of goods sold and credit accounts payable.

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Definitions:

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