The entry to record the purchase of raw materials on account using a job costing system would include a

Question

Quizplus · Accepted Answer

The purchase of raw materials is recorded as a debit to raw materials inventory account, as the materials are being added to the inventory. As this transaction is on account (i.e., on credit), a credit entry will be made to accounts payable. However, the work in process inventory account is not affected until the raw materials are used in production and moved into the production process. Therefore, options A and C are incorrect.

The Entry to Record the Purchase of Raw Materials on Account