During May at Landreth Corporation, $81,000 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 the requisition from the storeroom would include a:

Question

Quizplus · Accepted Answer

The direct materials used in production are debited to the Work in Process account. Therefore, the journal entry would include a debit to Work in Process of $81,000, less the indirect materials of $7,000, resulting in a debit to Work in Process of $74,000.

During May at Landreth Corporation, $81,000 of Raw Materials Were