Question

Georgina has opened a bow making business. They were commissioned to create bows for a birthday party. During this process of creating a product, Georgina is putting the raw materials into use. What is the associated journal entry for the direct materials?

Answer 1

The associated journal entry for direct materials in Georgina's bow making business is a debit entry to Raw Materials Inventory and a credit entry to Accounts Payable or Cash.

Step-by-step explanation:

The associated journal entry for the direct materials in Georgina's bow making business would be a debit entry to the Raw Materials Inventory account, and a credit entry to the Accounts Payable or Cash account, depending on whether Georgina purchased the materials on credit or with cash. This journal entry reflects the increase in Raw Materials Inventory as Georgina puts the raw materials into use for creating the bows.