On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the month, the company purchased an additional $78,000 of raw materials. During November, $95,000 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 $3,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions:The debits entered in the Raw Materials account during the month of November total:
A) $95,000
B) $78,000
C) $32,000
D) $110,000

Question

Quizplus · Accepted Answer

The debits entered in the Raw Materials account during November total $78,000, which represents the additional raw materials purchased during the month. The beginning balance and the materials requisitioned for production are not debited to the Raw Materials account; instead, purchases are.

On November 1, Arvelo Corporation Had $32,000 of Raw Materials