Bard manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The journal entry to record issuance of materials to production is:

1. Debit raw materials inventory $195,000; credit accounts payable $195,000

2. debit Goods in process inventory $195,000; credit Raw Materials inventory $195,000

3. debit raw materials inventory $195,000; credit Goods in process inventory $195,000

4. debit Goods in process inventory $165,000; debit Factory Overhead $30,000; credit Raw Materials Inventory $195,000

5. debit raw materials inventory $195,000; credit Raw Materials Inventory $195,000