In a just-in-time (JIT) environment, the journal entry to record raw materials purchases would include a debit to the raw and in process inventory account.

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In a JIT environment, inventory is minimized and materials are purchased only when needed for production. Therefore, the journal entry to record raw materials purchases would include a debit to the raw and in process inventory account to reflect an increase in inventory.

In a Just-In-Time (JIT) Environment, the Journal Entry to Record