The journal entry to record the requisition from the storeroom would include a:
A)debit to Work in Process of $69,000
B)debit to Work in Process of $63,000
C)debit to Raw Materials of $69,000
D)credit to Manufacturing Overhead of $6,000

Question

Quizplus · Accepted Answer

The requisition from the storeroom is a request for a transfer of raw materials from the storeroom to the production line. This means that the cost of the raw materials will be added to the Work in Process inventory. The amount to be added is the cost of the raw materials that were transferred, which in this case is $63,000 (the cost of 7,000 pounds at $9 per pound). Therefore, the journal entry would include a debit to Work in Process of $63,000.

The Journal Entry to Record the Requisition from the Storeroom