The journal entry to record the purchase of direct materials for cash includes:
A)a credit to Raw Materials Inventory.
B)a credit to Finished Goods Inventory.
C)a credit to Work in Process Inventory.
D)a credit to Cash.

Question

Quizplus · Accepted Answer

The journal entry to record the purchase of direct materials for cash would include a debit to Raw Materials Inventory (or Direct Materials Inventory) and a credit to Cash. There would not be any other inventory account involved in this transaction. Therefore, the correct option is D, which involves a credit to Cash.

The Journal Entry to Record the Purchase of Direct Materials