In accumulating raw materials costs, companies debit
the cost of raw materials purchased in a perpetual
system to:

Question

a) Raw Materials Purchases.

b) Raw Materials Inventory.

c) Purchases.

d) Work in Process.

Islam Refaat · Answer

Since you are using Perpetual system it will be debited to Raw Materials Inventory

Jiju Oommen · Answer

b) Raw Materials Inventory.

manseer muhammed ali · Answer

option b. Raw Materials Inventory should be debited

Utilisateur supprimé · Answer

When placing the order and make the deposit (payment in advance) then you should debit the cost to Raw Materials Purchase

When the items reaching your warehouse your software should automatically move this ammount to "Raw Materials Inventory"

This is from Supply Chain point of view.