Question

During December at Ingrim Corporation, $74,000 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 Raw Materials of $74,000. b. debit to Work in Process of $68,000. c. credit to Manufacturing Overhead of $6,000. d. debit to Work in Process of $74,000.

Answer 1

Answer:

b. debit to Work in Process of $68,000

Explanation:

The journal entry is as follows:

Work in process A/c Dr $68,000

Factory overhead A/c Dr $6,000

     To Raw material A/c $74,000

(Being the requisition from the storeroom is recorded)

Since it is already given that raw material i.e $74,000 requisitioned from the storeroom and the indirect material totaled is $6,000 so the remaining balance transferred to the work in process account i.e $68,000