ECONOMICS

Detailed explanation-1: -Answer and Explanation: The correct answer is option (c). Using a process costing system, the journal entry to record the requisition of direct materials to be used in production includes credit to Raw Materials Inventory.

Detailed explanation-2: -Journal entries are used to record and report the financial information relating to the transactions. The example that follows illustrates how the journal entries reflect the process costing system by recording the flow of goods and costs through the process costing environment.

Detailed explanation-3: -Purchase of Raw Materials Journal Entry When you initially purchase materials for use, you record the purchase in the accounting records at cost. This entry consists of a debit to raw materials inventory and a credit to accounts payable or cash, reports Accounting Tools. The entry increases the total inventory account.

Detailed explanation-4: -Answer: a) a credit to materials inventory. the issuance of direct material to production is a debit in work in process inventory and credit materials inventory.

Detailed explanation-5: -Explanation: When raw material inventory is purchased, we debit it as it is a current asset for the company and since we have purchased it on account, we will recognize a liability called accounts payable.