Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials. How should Andrews record the purchase of raw materials for March?
A. Debit Accounts Payable $165,000; credit Raw Materials Inventory $165,000
B. Debit Work in Process Inventory $165,000; credit Raw Materials Inventory $165,000
C. Debit Raw Materials Inventory $165,000; credit Accounts Payable $165,000
D. Debit Raw Materials Inventory $187,000; credit Cash $187,000
E. Debit Accounts Payable $187,000; credit Raw Materials Inventory $187,000
Answer: C
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