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The journal entry to record the purchase of materials on account in process cost accounting is:___________ 1. debit Raw Materials Inventory and credit Accounts Payable 2. debit Production Materials, and credit Accounts Payable 3. debit Accounts Payable and credit Raw Materials Inventory 4. debit Accounts Payable and credit Production Materials

Respuesta :

Answer:

The correct option is the first one which is debit Raw Materials Inventory and credit Accounts Payable

Explanation:

The raw materials inventory which is the receiving account for the raw materials received into the factory is debited since receiving account or increase in asset account is naturally a debit  entry according to the golden rule of double entry.

The credit goes to the accounts payable as obligation owed by the company to the supplier of the raw materials payable at a later date

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