Gallon Corporation had $24,000 of raw materials on hand on April 1. During the month, the Corporation purchased an additional $52,000 of raw materials. During April, $62,000 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 $2,000. The debits to the Work in Process account as a consequence of the raw materials transactions in April total:
A) $60,000
B) $62,000
C) $0
D) $52,000

Question

Quizplus · Accepted Answer

The debits to the Work in Process account include only the direct materials requisitioned for use in production. Since the total raw materials requisitioned were $62,000 and the indirect materials (which are not debited to Work in Process) totaled $2,000, the direct materials debited to Work in Process would be $62,000 - $2,000 = $60,000.

Gallon Corporation Had $24,000 of Raw Materials on Hand on April