Squirrel Co.operates in a lean manufacturing environment.For June production,Squirrel purchased 6,000 units of raw materials at $6.00 per unit on account.The journal entry required to record this transaction is:
A) Raw and In Process Inventory 36,000
Accounts Payable 36,000
B) Cost of Goods Manufactured 36,000
Accounts Payable 36,000
C) Finished Goods 36,000
Accounts Payable 36,000
D) Raw Materials Inventory 36,000
Accounts Payable 36,000

Question

Quizplus · Accepted Answer

In a lean manufacturing environment, raw materials are often recorded as "Raw and In Process Inventory" when purchased.