In a job order cost system it would be correct in recording the purchase of raw materials to debit
A) Work in Process Inventory.
B) Work in Process and Manufacturing Overhead.
C) Raw Materials Inventory.
D) Finished Goods Inventory.

Question

Quizplus · Accepted Answer

The purchase of raw materials should be recorded by debiting Raw Materials Inventory, as this will increase the inventory account for raw materials. The cost of the raw materials will eventually be transferred to the Work in Process Inventory account once they are requisitioned for use in production.

In a Job Order Cost System It Would Be Correct