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Clarksen Company Uses a Process Costing System

Question 218

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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 Inventory-Dept.A $93,000; debit Work in Process Inventory-Dept.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 Inventory-Dept.A $93,000; debit Raw Materials Inventory-Dept.D $67,000; credit Work in Process Inventory $160,000.
E) Debit Work in Process Inventory-Dept.A $93,000; debit Work in Process Inventory-Dept.D $67,000; credit Accounts Payable $160,000.

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