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 should be debited to the Work-in-Process Inventory account, as it represents the cost of materials that have been used in the production process. The amount should be $51,100, as stated in the basic data provided. Option A is incorrect because there is no indication in the data that overhead should be debited for this transaction. Option B is incorrect because it assumes a higher amount of raw materials used than the amount given in the data. Option D is incorrect because it suggests a credit to the Manufacturing Overhead account, which is not appropriate for this transaction.

Here Is Some Basic Data for Shannon Company: the Journal