Question

At the beginning of October, Cozier Corporation had $34,000 of raw materials on hand. During the month, the company purchased an additional $78,000 of raw materials. During October, $92,000 of raw materials were removed from the storeroom for use in production. The credits to the Raw Materials account for the month of October total:

Answer 1

Answer:

$92,000

Explanation:

As we know that the raw material inventory debited by the starting balance amount, purchase amount but it would be credited by the material used or transferred amount to the WIP inventory

As we can see that the $92,000 is requisitioned i.e. transferred to the WIP inventory so the same is to be reflected in the credit amount

Hence, the credit to the raw material account is made for $92,000

We assume that requisitioned word is used instead of removal