The purchase of raw materials on account in a process costing system is recorded
ID: 2423843 • Letter: T
Question
The purchase of raw materials on account in a process costing system is recorded with a:
Debit to Purchases and credit to Cash.
Debit to Purchases and a credit to Accounts Payable.
Debit to Raw Materials Inventory and a credit to Accounts Payable.
Debit to Accounts Payable and a credit to Raw Materials Inventory.
Debit to Work in Process Inventory and a credit to Accounts Payable.
Debit to Purchases and credit to Cash.
Debit to Purchases and a credit to Accounts Payable.
Debit to Raw Materials Inventory and a credit to Accounts Payable.
Debit to Accounts Payable and a credit to Raw Materials Inventory.
Debit to Work in Process Inventory and a credit to Accounts Payable.
Explanation / Answer
Answer is Debit Raw material inventory and a credit to Accounts payable.
Explanation:
The Journal entry for purchase of raw material on account is as follows:
Raw material Inventory Dr.
Accounts payable
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