In job costing, the purchase of raw materials is recorded as a debit to the Raw Materials Inventory account and a credit to accounts payable.

Name: In job costing, the purchase of raw materials is recorded as a debit to the Raw Materials Inventory account and a credit to accounts payable.
Brand: Quizplus
Rating: 4.8 (56 reviews)

Question

Quizplus · Accepted Answer

This is because the Raw Materials Inventory account is debited to increase it, and the accounts payable account is credited to record the liability of the company to pay for the purchased raw materials.

In Job Costing, the Purchase of Raw Materials Is Recorded