Refer to the T-account below: Entry (5) could represent which of the following?
A) Payments for raw materials.
B) Requisitions of raw materials to be used in production.
C) Purchases of raw materials.
D) Overhead cost applied to Work in Process.

Question

Refer to the T-account below:  Entry (5) could represent which of the following?
A) Payments for raw materials. 
B) Requisitions of raw materials to be used in production. 
C) Purchases of raw materials. 
D) Overhead cost applied to Work in Process.

Quizplus · Accepted Answer

Entry (5) represents the purchase of raw materials, as it shows an increase in the Raw Materials Inventory account and a corresponding decrease in the Cash account. This indicates that the company has acquired materials but has not yet used them in production.

Refer to the T-Account Below: Entry (5) Could Represent