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

Select one:

a. Debit Raw Materials Inventory $195,000; credit Accounts Payable $195,000.

b. Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000.

c. Debit Raw Materials Inventory $195,000; credit Work in Process Inventory $195,000.

d. Debit Work in Process Inventory $165,000; debit Factory Overhead $30,000; credit Raw Materials Inventory $195,000.

e. Debit Finished Goods Inventory $195,000; credit Raw Materials Inventory $195,000.

2.

Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, paid in cash, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the purchase of materials is:

Select one:

a. Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000.

b. Debit Work in Process Inventory $198,000; credit Accounts Payable $198,000.

c. Debit Raw Materials Inventory $198,000; credit Work in Process Inventory $198,000.

d. Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000.

e. Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198,000.