Asked by April Thompson on May 21, 2024
Verified
Gullett Corporation had $32,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $81,000 of raw materials. The journal entry to record the purchase of raw materials would include a:
A) debit to Raw Materials of $113,000
B) credit to Raw Materials of $81,000
C) debit to Raw Materials of $81,000
D) credit to Raw Materials of $113,000
Raw Materials
The basic materials that are used in the manufacturing process to produce goods, typically transformed or converted into finished products.
- Clarify the procedures for obtaining, applying, and requisitioning raw materials in the manufacturing sector.
Verified Answer
KC
Killian CarlesMay 23, 2024
Final Answer :
C
Explanation :
When raw materials are purchased, they are debited to the Raw Materials account. Therefore, the journal entry to record the purchase of raw materials would include a debit to Raw Materials of $81,000. The credit side of the entry would be to either Accounts Payable or Cash, depending on if the purchase was made on credit or paid for immediately. However, neither of the other choices correctly represent the debit/credit required for the journal entry.
Learning Objectives
- Clarify the procedures for obtaining, applying, and requisitioning raw materials in the manufacturing sector.