During May at Shatswell Corporation, $57,000 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 $7,000. The journal entry to record this requisition would include a debit to Manufacturing Overhead of:
A)$57,000
B)$7,000
C)$0
D)$50,000

Question

Quizplus · Accepted Answer

The indirect materials of $7,000 are included in the raw materials requisition, but they are not considered direct materials which are charged to Work in Process. Instead, they are charged to Manufacturing Overhead as indirect materials. Therefore, the journal entry would include a debit to Manufacturing Overhead for the cost of the indirect materials, which is $7,000. The remaining $50,000 would be debited to Work in Process as direct materials.

During May at Shatswell Corporation, $57,000 of Raw Materials Were