Here is some basic data for Shannon Company: The journal entry to record the cost of raw materials placed into production involves a

Question

Here is some basic data for Shannon Company:  The journal entry to record the cost of raw materials placed into production involves a

Quizplus · Accepted Answer

The cost of raw materials placed into production is considered a direct cost of producing goods and should be debited to the work in process inventory account. The amount of the debit would be $51,000 based on the given data. Option A is incorrect because overhead costs are indirect costs and should not be charged for direct material costs. Option B is incorrect because it overstated the amount of raw materials placed into production since it included other direct costs such as labor and manufacturing overhead. Option D is incorrect because it suggests a credit entry which is not appropriate for recording the cost of the materials used.

Here Is Some Basic Data for Shannon Company: the Journal