Wedd Corporation had $35,000 of raw materials on hand on May 1.During the month,the company purchased an additional $68,000 of raw materials.During May,$92,000 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 $5,000.The debits to the Work in Process account as a consequence of the raw materials transactions in May total:

Question

Quizplus · Accepted Answer

The total raw materials used in production is the sum of direct and indirect materials, which is $92,000. Therefore, the debits to the Work in Process account will also be $92,000. However, we need to subtract the cost of the indirect materials ($5,000) to get the debits resulting from the direct materials transactions, which is $87,000. This is the same as option D.

Wedd Corporation Had $35,000 of Raw Materials on Hand on May