Use the information below to answer the following question(s).
Fun 'N' Games manufactures various board games.For January there were no beginning inventories of direct materials,and no beginning or ending work-in-process.Only one indirect manufacturing cost category is currently in use,"Conversion Costs." Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing.

-Which of the following journal entries properly records the purchase of direct materials at Fun 'N' Games?

Question

Use the information below to answer the following question(s).
Fun 'N' Games manufactures various board games.For January there were no beginning inventories of direct materials,and no beginning or ending work-in-process.Only one indirect manufacturing cost category is currently in use,"Conversion Costs." Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing.
 
-Which of the following journal entries properly records the purchase of direct materials at Fun 'N' Games?

Quizplus · Accepted Answer

The journal entry to record the purchase of direct materials is a debit to the Raw Materials Inventory account and a credit to the Accounts Payable account. Option B shows both of these accounts being correctly affected. Option A is incorrect because it credits the Raw Materials account instead of debiting it. Option C, D, and E all either incorrectly credit the Raw Materials account or debit an incorrect account.

Use the Information Below to Answer the Following Question(s)