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 $153,000; credit raw materials inventory $153,000. 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:

Step1: Record raw - material purchase

When raw materials are purchased on account, the Raw Materials Inventory account is debited to increase the asset, and Accounts Payable is credited. The amount of raw - material purchase is the sum of direct and indirect materials, which is $165,000 + 13,000=178,000$. But the question asks for the journal entry for direct materials used. When direct materials are used in production, they are transferred from the Raw Materials Inventory to the Work in Process Inventory.

Step2: Identify the journal entry for direct materials used

The direct materials used in production should be debited to the Work in Process Inventory and credited to the Raw Materials Inventory. The amount of direct materials used is $141,000$. So the journal entry is debit Work in Process Inventory $141,000$; credit Raw Materials Inventory $141,000$.

Answer:

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