Donham Corporation had $25,000 of raw materials on hand on May 1. During the month, the Corporation purchased an additional $65,000 of raw materials. During May, $66,000 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 debits to the Work in Process account as a consequence of the raw materials transactions in May total:
A)$0
B)$62,000
C)$65,000
D)$66,000

Question

Quizplus · Accepted Answer

The debits to the Work in Process account would be for the direct materials used in production. Since $66,000 of raw materials were requisitioned and $4,000 were indirect, the direct materials would be $66,000 - $4,000 = $62,000.

Donham Corporation Had $25,000 of Raw Materials on Hand on May