Materials purchased on account during the month amounted to $190,000. Materials requisitioned and placed in production totaled $156,000. The entry to record the transaction for materials requisitioned by the production department is

Question

Quizplus · Accepted Answer

The entry should reflect the materials that were requisitioned and placed in production, which were $156,000. Therefore, the correct entry would be to debit Work in Process for $156,000 and credit Materials for $156,000. Option C is the only answer that reflects this. Option A only debits Materials, but not crediting anything to balance the entry. Option B debits Materials for the total amount purchased but does not credit anything. Option D does not reflect the materials being requisitioned, but instead records a cash transaction.

Materials Purchased on Account During the Month Amounted to $190,000