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.

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Final Answer : B, Explanation :  In a process costing system, materials requisitioned are initially recorded in the Raw Materials Inventory account. However, since the materials are used in the production process, they need to be transferred to the Work in Process Inventory account. The entry to record the use of the direct materials by Department A and D would be:Debit Work in Process Inventory-Dept.A $93,000Debit Work in Process Inventory-Dept.D $67,000Credit Raw Materials Inventory $160,000Option A is incorrect because it does not record the transfer of materials to the Work in Process Inventory accounts.Option C is incorrect because it debits Factory Overhead, which is not appropriate for this transaction.Option D is incorrect because it debits Raw Materials Inventory accounts for departments, which is not appropriate for process costing.Option E is incorrect because it credits Accounts Payable, which is not appropriate for this transaction.

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