Question

The entry to record the purchase of raw materials on account using a job costing system would include a

A) credit to work in process inventory.
B) debit to accounts payable.
C) debit to work in process inventory.
D) debit to raw materials inventory.

Answer 1

The purchase of raw materials on account in a job costing system is recorded by debiting the raw materials inventory and crediting accounts payable. This entry increases the asset account for materials and represents an obligation to pay the supplier.

Step-by-step explanation:

The question pertains to recording the purchase of raw materials on account in a job costing system. In a job costing system, the initial purchase of raw materials is not directly expensed to the job, as the materials have not yet been used in production. Rather, they are considered an asset. Thus, the entry to record this purchase would involve a debit to the raw materials inventory, which increases this asset account to reflect the new materials on hand. Concurrently, because the materials are purchased on account, there is a credit to accounts payable, which reflects the company's obligation to pay the supplier in the future.

The correct answer to this question is D) debit to raw materials inventory. The entry is as follows:

• Debit to Raw Materials Inventory
• Credit to Accounts Payable

This entry records the increase in inventory and the corresponding increase in liabilities.