Squirrel co. operates in a lean manufacturing environment. for june production, squirrel purchased 6,000 units of raw materials at $6.00 per unit on account. the journal entry required to record this transaction is:

a. raw materials inventory36,000
accounts payable36,000

b. raw and in process inventory36,000
accounts payable36,000

c. finished goods36,000
accounts payable36,000

d. cost of goods manufactured36,000
accounts payable36,000

At the time of purchase of raw material inventory,

Raw material inventory account will debit and accounts payable account will credit.

Therefore, the Journal entry for this transaction is as follows:

Raw Materials Inventory Account    Dr. $36,000

To Accounts Payable                                           $36,000

(To record the purchase of raw material on account)

Workings:

Raw material Inventory = Units of raw material purchased × Price per unit

                                       = 6,000 × $6

                                       = $36,000

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answer; interviews;