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 added to the Work-in-Process Inventory account. Therefore, the journal entry should include a debit to the Work-in-Process Inventory account for $51,000. Option A is incorrect because overhead is not impacted by the cost of raw materials. Option B is incorrect since the cost of raw materials is $51,000, not $53,000. Option D is incorrect because the Manufacturing Overhead account is typically used to record indirect manufacturing costs, not direct material costs.

Here Is Some Basic Data for Shannon Company