Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 of direct materials and $13,000 of indirect materials.
- What amount will Andrew debit to Work in Process Inventory for the month of March?

Question

Quizplus · Accepted Answer

Andrew Industries will debit Work in Process Inventory for direct materials used in production, which is $141,000. Indirect materials are not directly traceable to specific jobs and are instead included in manufacturing overhead. The purchase of raw materials on account and the beginning raw materials inventory balance are not directly relevant to the calculation of the direct materials used in production, so they are not included in the debit to Work in Process Inventory.

Andrew Industries Purchased $165,000 of Raw Materials on Account During