Which of the following journal entries correctly records the current month's activity where $250,000 of raw material was purchased for cash, and $150,000 of direct material and $60,000 of indirect materials were used in the production process?

Question

Quizplus · Accepted Answer

Choice B correctly records the purchase of raw materials for cash with a debit to Raw Materials and a credit to Cash. It also correctly records the usage of direct and indirect materials in the production process with a debit to Work in Process for the total amount of materials used ($150,000 + $60,000 = $210,000), a credit to Raw Materials for the total amount of direct and indirect materials used ($150,000 + $60,000 = $210,000), and a corresponding credit to Manufacturing Overhead for the indirect materials used. Choices A, C, D, and E contain errors such as recording the raw material purchase as a credit or not properly accounting for the usage of indirect materials.

Which of the Following Journal Entries Correctly Records the Current