Posted: April 3rd, 2017

Which of the following journal entries correctly records the current month’s activity where $125,000 of raw material was purchased for cash, and $75,000 of direct material and $30,000 of indirect materials were used in the production process?

Which of the following journal entries correctly records the current month’s activity where $125,000 of raw material was purchased for cash, and $75,000 of direct material and $30,000 of indirect materials were used in the production process?
(A) Raw Materials Inventory 125,000

Raw Materials Inventory 105,000
Goods in Process Inventory 75,000
Factory Overhead 30,000

(B) Raw Materials Inventory 125,000
Cash 125,000

Goods in Process Inventory 75,000
Factory Overhead 30,000
Raw Materials Inventory 105,000

(C) Raw Materials Inventory 125,000
Cash 125,000

Raw Materials Inventory 105,000
Goods in Process Inventory 75,000
Factory Overhead 30,000

(D) Cash 125,000
Raw Materials Inventory 125,000

Goods in Process Inventory 75,000
Factory Overhead 30,000
Raw Materials Inventory 105,000

(E) Raw Materials Inventory 125,000
Cash 125,000

Goods in Process Inventory 125,00