Question

Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials. How should Andrews journalize the purchase of raw materials for March?

Answer 1

Answer:

The journal entry for purchase of raw material for march is given below:

Raw Material Inventory Dr $165,000

     To Accounts Payable $165,000

Explanation:

Given that,

Purchase of raw material - $165,000

Beginning Raw Materials Inventory - $22,000

Direct material - $141,000

Indirect materials - $13,000

Journal Entry : The Journal entry shows the debit and credit side of the accounts in which debit records expenditure whereas credit records income and gains.

Thus, the journal entry for purchase of raw material for march is given below:

Raw Material Inventory Dr $165,000

     To Accounts Payable $165,000