contestada

During July at Loeb Corporation, $83,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The journal entry to record the requisition from the storeroom would include a:

A)debit to Work in Process of $79,000
B)debit to Work in Process of $83,000
C)credit to Manufacturing Overhead of $4,000
D)debit to Raw Materials of $83,000

Respuesta :

Answer:

(A) Debit to Work in Process of $79,000

Explanation:

Solution:

         Total Raw Material Cost                         $83,000

(Less) Indirect Materials cost                            $4,000

          Total raw materials amount                   $79,000

debited for Work in Process

Hence the right answer of Work in Process is $79,000.

Answer:

A)debit to Work in Process of $79,000

Explanation:

The raw materials acquired from the storeroom is $83,000 out of which $4,000 is indirect material. Therefore, the remainder $79,000 must be included as Work In Process.

Option (B) the entry is correct, however, the amount mentioned is incorrect. While the Option (C) is incorrect as the question refers to the journal entry for raw materials acquired from the storeroom.

Lastly, Option (D) is incorrect as Raw Materials are credited not debited. This is due to the fact that they are classified as asset and are being used for production. Therefore, should be credited to reduce the Raw materials available.

Hence, the Option (A) is correct both in terms of journal entry and amount i.e. debit to Work in Process of $79,000

Otras preguntas