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

Question

Quizplus · Accepted Answer

The direct materials used in production are debited to Work in Process, which is $83,000 - $4,000 = $79,000. Indirect materials are recorded separately in Manufacturing Overhead.

During July at Loeb Corporation, $83,000 of Raw Materials Were