Question

The accountant for Eric's Plumbing Equipment Company recently made a journal entry consisting of a debit to Work in Process and a credit to Raw Materials Inventory. This entry recorded:

Answer 1

Answer:

The use of raw material in the production process

Explanation:

The journal entry for recording the raw material used for the production process is shown below:

Work in Process Inventory A/c Dr XXXXX

        To  Raw Materials Inventory A/c XXXXX

(Being the raw material used for the production process is recorded)

For recording this transaction, we debited the Work in Process inventory account and credited the Raw Materials Inventory account