On August 1, Shead Corporation had $35,000 of raw materials on hand. During the month, the company purchased an additional $56,000 of raw materials. During August, $69,000 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 $6,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The debits entered in the Raw Materials account during the month of August total:
A)$91,000
B)$69,000
C)$35,000
D)$56,000

Question

Quizplus · Accepted Answer

The debits to the Raw Materials account represent purchases of raw materials. In August, Shead Corporation purchased $56,000 of raw materials, which is the amount debited to the Raw Materials account.

On August 1, Shead Corporation Had $35,000 of Raw Materials