Question

LO 4.7In a job order cost system, raw materials purchased are debited to which account?

raw materials inventory
work in process inventory
finished goods inventory
cost of goods sold

Answer 1

Raw materials inventory

Step-by-step explanation:

Since the raw material is purchased which increase the stock account so we debited it and for purchasing the raw material, the cash is given or it can takes on credit so we credited it

So, the journal entry would be

Raw material A/c Dr

To Cash A/c

(Being raw material purchased for cash)

Raw material A/c Dr

To Accounts payable A/c

(Being raw material purchased on credit)