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 to record materials requisitioned by the production department should reflect the actual cost of materials used in production, which in this case is $156,000. Therefore, the correct entry is to debit Work in Process for $156,000 and credit Materials for $156,000. Option C correctly shows this transaction. Option A incorrectly fails to record the materials expense, and Option B overstates the expense by including the total amount purchased on account that month, not just the amount used in production. Option D would be a correct entry if the company had paid cash for the materials, but that information is not given in the question.

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