Question

Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials. How should Andrews record the purchase of raw materials for March? Multiple Choice · Debit Raw Materials Inventory $165,000; credit Accounts Payable $165,000 · Debit Accounts Payable $187,000; credit Raw Materials Inventory $187,000 · Debit Raw Materials Inventory $187,000; credit Cash $187,000 · Debit Work in Process Inventory $165,000; credit Raw Materials Inventory $165,000 · Debit Accounts Payable $165,000; credit Raw Materials Inventory $165,000

Answer 1

Debit Raw Materials Inventory $165,000; credit Accounts Payable $165,000

Step-by-step explanation:

Purchase of Raw Materials must be recorded as follows :

Raw Materials $165,000 (debit)

Accounts Payable $165,000 (credit)

Being Purchase of Raw Materials on account.

Note :

Opening Raw Materials and details of materials to complete jobs are not necessary for this requirement.