Question

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 of direct materials and $13,000 of indirect materials. what journal entry should andrew use to account for direct materials used in march: multiple choice debit raw materials inventory $141,000; credit accounts payable $141,000. debit work in process inventory $141,000; credit raw materials inventory $141,000. debit work in process inventory $141,000; credit accounts payable $141,000. debit finished goods inventory $22,000; credit raw materials inventory $22,000. debit raw materials inventory $153,000; credit work in process inventory $153,000.

Explanation:

When direct materials are used in production, the Work - in - Process Inventory account is debited as the cost is added to the production in progress. The Raw Materials Inventory account is credited as the materials are being removed from inventory.

Answer:

Debit Work in Process Inventory $141,000; credit Raw Materials Inventory $141,000.