Andrew Industries purchased $165,000 of raw materials on account during the mont
ID: 2512469 • Letter: A
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 / Answer
1. Debit Work in Process Inventory $ 141,000; Credit Raw Materials Inventory $ 141,000.
2. Actual overhead incurred was less than the overhead amount applied to production.
3. $ 25,000.
4. Job order production.
5. Debit Work in Process Inventory; Credit Raw Materials Inventory.