ECONOMICS

Detailed explanation-1: -Recording acquisition of raw materials is apart of accumulating manufacturing costs. Manufacturing costs are generally incurred in one period and recorded in a subsequent period. The purchases account is credited for all raw materials purchase returns and allowances.

Detailed explanation-2: -The purchase of raw materials should be recorded as a debit to the Raw Materials inventory account in a job order cost system. The raw materials account increases when raw materials are purchased and decrease when materials are issued to the manufacturing process.

Detailed explanation-3: -Raw materials and accounting Raw materials are usually recorded on a balance sheet as an inventory asset. When recording raw materials, a debit is made to the raw materials inventory account, while a credit is made to the accounts payable account.

Detailed explanation-4: -When a manufacturing company purchases raw materials to be used in manufacturing finished goods, it will typically credit accounts payable and debit raw materials inventory (answer B).

Detailed explanation-5: -Cost accounting is primarily concerned with accumulating information about product costs. When raw materials are received, there is no effort at this point to associate the cost of materials with specific jobs.