Minstrel manufacturing uses a job order costing system. during one month minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. minstrel incurred a factory payroll of $150,000, paid in cash, of which $40,000 was indirect labor. minstrel uses a predetermined overhead rate of 150% of direct labor cost. the journal entry to record the issuance of materials to production is: debit raw materials inventory $195,000; credit accounts payable $195,000. debit work in process inventory $165,000; debit factory overhead $30,000; credit raw materials inventory $195,000. debit finished goods inventory $195,000; credit raw materials inventory $195,000. debit work in process inventory $195,000; credit raw materials inventory $195,000. debit raw materials inventory $195,000; credit work in process inventory $195,000.

Question

Business

Jovanni Schroeder

17 November, 22:38

Minstrel manufacturing uses a job order costing system. during one month minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. minstrel incurred a factory payroll of $150,000, paid in cash, of which $40,000 was indirect labor. minstrel uses a predetermined overhead rate of 150% of direct labor cost. the journal entry to record the issuance of materials to production is: debit raw materials inventory $195,000; credit accounts payable $195,000. debit work in process inventory $165,000; debit factory overhead $30,000; credit raw materials inventory $195,000. debit finished goods inventory $195,000; credit raw materials inventory $195,000. debit work in process inventory $195,000; credit raw materials inventory $195,000. debit raw materials inventory $195,000; credit work in process inventory $195,000.

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Fletcher Clarke · Answer 1

The best answer for this would be:

debit raw materials inventory $195,000; credit accounts payable $195,000

This is because this should be the next journal entry to record the purchase of materials. This cost accounting system puts emphasis on updated cost of the materials and generally the finished good inventories.