Asked by
Samuel Boyajian
on Oct 15, 2024
Verified
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
Raw Materials Inventory
The total cost or value of all the basic materials and components that are to be used in the manufacture of a product.
Accounts Payable
Liabilities owed to suppliers or creditors for goods and services received but not yet paid for.
Purchase
The act of buying goods or services, which can include raw materials, equipment, or any item required for business operations.
- Account for the purchases and usage of raw materials in production.
Verified Answer
NF
Learning Objectives
- Account for the purchases and usage of raw materials in production.
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