Question

Clarksen Company uses a process costing system. The company requisitioned $93,000 of materials for Department A and $67,000 of materials for Department D. The entry to record the use of the direct materials by these two departments is:
A. Debit Raw Materials Inventory $160,000; credit Accounts Payable $160,000.
B. Debit Work in Process InventoryDept A $93,000; debit Work in Process InventoryDept D $67,000; credit Raw Materials Inventory $160,000.
C. Debit Factory overhead $160,000; credit Raw Materials Inventory $160,000.
D. Debit Raw Materials InventoryDept A $93,000; debit Raw Materials InventoryDept D $67,000; credit Work in Process Inventory $160,000.
E. Debit Work in Process InventoryDept A $93,000; debit Work in Process InventoryDept D $67,000; credit Accounts Payable $160,000.

Answer

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