Question

a manufacturer used $100,000 of direct materials in its roasting department. the journal entry to record the use of direct materials consists of a.multiple choicedebit raw materials inventory for $100,000; credit work in process inventory—roasting for $100,000.debit work in process inventory—roasting for $100,000; credit accounts payable for $100,000.debit work in process inventory—roasting for $100,000; credit raw materials inventory for $100,000.debit work in process inventory—roasting for $100,000; credit cash for $100,000.debit raw materials inventory for $100,000; credit accounts payable for $100,000.

Explanation:

When direct materials are used in production (Roasting department), the cost is transferred to Work in Process Inventory (debit, as it's an asset increase for the production process) and removed from Raw Materials Inventory (credit, as the materials are no longer in raw inventory).

• Option 1: Incorrect debit/credit (should debit Work in Process, credit Raw Materials).
• Option 2: Incorrect credit (Accounts Payable is for purchases, not usage).
• Option 3: Correct—debit Work in Process Inventory—Roasting (to record materials used in production) and credit Raw Materials Inventory (to reduce raw materials on hand).
• Option 4: Incorrect credit (Cash is not used here for material usage).
• Option 5: Incorrect (this is for purchasing materials, not using them).

Answer:

C. Debit Work in Process Inventory—Roasting for $100,000; credit Raw Materials Inventory for $100,000. (Note: Assuming the third option is labeled C; if original options had labels like A - E, adjust accordingly. Based on the order, the third option is the correct one with the described journal entry.)