Bard Manufacturing Uses a Job Order Cost Accounting System

Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The journal entry to record the issuance of materials to production is:

A) Debit Raw Materials Inventory $195,000; credit Accounts Payable $195,000.
B) Debit Goods in Process Inventory $195,000; credit Raw Materials Inventory $195,000.
C) Debit Raw Materials Inventory $195,000; credit Goods in Process Inventory $195,000.
D) Debit Goods in Process Inventory $165,000; debit Factory Overhead $30,000; credit Raw Materials Inventory $195,000.
E) Debit Finished Goods Inventory $195,000; credit Raw Materials Inventory $195,000.