Asked by Kibre Dubiso on May 03, 2024
Verified
On January 1, Schaf Corporation had $23,000 of raw materials on hand. During the month, the company purchased an additional $54,000 of raw materials. During January, $50,000 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 $6,000.The journal entry to record the requisition from the storeroom would include a:
A) debit to Work in Process of $50,000
B) debit to Raw Materials of $50,000
C) credit to Manufacturing Overhead of $6,000
D) debit to Work in Process of $44,000
Raw Materials
The basic substances from which products are made, typically used in the initial stages of the manufacturing process.
Work in Process
Inventory representing partially completed goods, which are still undergoing manufacturing processes.
Indirect Materials
Materials that are used in the production process but are not directly traceable to a finished product.
- Execute proper recording of transactions for the buying, requisitioning, and deployment of raw materials.
- Identify the correct treatment of direct and indirect materials in production.
Verified Answer
ZK
Zybrea KnightMay 10, 2024
Final Answer :
D
Explanation :
The journal entry to record the requisition from the storeroom would include a debit to Work in Process for the total cost of direct materials used in production, which is $50,000 - $6,000 (indirect materials) = $44,000. Therefore, the correct choice would be option D.
Learning Objectives
- Execute proper recording of transactions for the buying, requisitioning, and deployment of raw materials.
- Identify the correct treatment of direct and indirect materials in production.
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