Question

The journal entry to record June production activities for direct material usage is: Debit Raw Materials Inventory $87,000; credit Accounts Payable $87,000. Debit Raw Materials Inventory $87,000; credit Finished Goods Inventory $87,000. Debit Work in Process Inventory $87,000; credit Raw Materials Inventory $87,000. Debit Work in Process Inventory $87,000; credit Cost of Goods Sold $87,000.

Answer 1

Answer:

Debit Work in Process Inventory $87,000; credit Raw Materials Inventory $87,000

Explanation:

The journal entry to record the usage of the direct material is

work in process inventory $87,000

        To raw material inventory $87,000

(Being the usage of the direct material is recorded)

here the work in process inventory is debited as it increased the assets and credited the raw material inventory as it decreased the assets

Therefore the third option is correct