The Raw Materials Inventory account is
A)a subsidiary account.
B)increased for invoice costs and freight costs chargeable to the purchaser.
C)increased for purchase discounts taken.
D)increased for purchase returns and allowances.

Question

Quizplus · Accepted Answer

The Raw Materials Inventory account is increased for invoice costs and freight costs chargeable to the purchaser, which are necessary costs to bring the raw materials to the company's location. The other options would decrease the Raw Materials Inventory account.

The Raw Materials Inventory Account Is