Nevada Manufacturing Has Two Processing Departments, Department I and Department

Multiple Choice

Nevada Manufacturing has two processing departments, Department I and Department II. The raw materials processed at Department I are sent to Department II for further processing. During June, direct materials worth $50,000 purchased on account were assigned to Department I. The journal entry to record issue of direct materials to production is:

A) debit Work-in-Process Inventory-Department I, $50,000; credit Raw Materials Inventory, $50,000.
B) debit Raw Materials Inventory, $50,000; credit Work-in-Process Inventory-Department I, $50,000.
C) debit Work-in-Process Inventory-Department I, $50,000; credit Accounts Payable, $50,000.
D) debit Accounts Payable, $50,000; credit Work-in-Process Inventory-Department I, $50,000.