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 to the Manufacturing Overhead account as a consequence of the raw materials transactions in August total:
A)$6,000
B)$69,000
C)$0
D)$63,000

Question

Quizplus · Accepted Answer

The debits to the Manufacturing Overhead account as a consequence of the raw materials transactions in August total $6,000. This is because the only raw materials that were used indirectly were the $6,000 of indirect materials.

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