Atlace Manufacturers uses a standard costing system.Standards for direct materials are as follows:
-The company plans to produce 3,000 units of product,and has purchased 10,000 pounds of raw materials for a net cost of $48,000.What is the journal entry to record this transaction?

Question

Atlace Manufacturers uses a standard costing system.Standards for direct materials are as follows:  
-The company plans to produce 3,000 units of product,and has purchased 10,000 pounds of raw materials for a net cost of $48,000.What is the journal entry to record this transaction?

Quizplus · Accepted Answer

The journal entry to record the purchase of 10,000 pounds of raw materials at a net cost of $48,000 is a debit to the Raw Materials Inventory account for $48,000 and a credit to the Accounts Payable account for $48,000. Therefore, the correct choice is A.

Atlace Manufacturers Uses a Standard Costing System