Refer to the T-account below:
Entry (5)could represent which of the following?
A) Payments for raw materials.
B) Requisitions of raw materials to be used in production.
C) Purchases of raw materials.
D) Overhead cost applied to Work in Process.

Question

Refer to the T-account below:
 Entry (5)could represent which of the following?
A) Payments for raw materials. 
B) Requisitions of raw materials to be used in production. 
C) Purchases of raw materials. 
D) Overhead cost applied to Work in Process.

Quizplus · Accepted Answer

Entry (5) represents an increase in the Raw Materials account and a corresponding decrease in the Accounts Payable account. This would occur when raw materials are purchased on credit from a supplier.

Refer to the T-Account Below