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 to the Manufacturing Overhead account as a consequence of the raw materials transactions in November total:
A) $95,000
B) $3,000
C) $0
D) $92,000

Question

Quizplus · Accepted Answer

The debit to the Manufacturing Overhead account for the raw materials transactions in November would be $3,000, representing the indirect materials requisitioned for use in production. Direct materials are debited to the Work in Process account, while indirect materials are debited to the Manufacturing Overhead account.

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