Frost Company produces cupcakes in large batches.Three departments are involved in the production process -- Mixing,Baking,and Packaging.Frost uses a process costing system.If the Mixing Department requisitioned direct materials to be used in production totaling $3,500,which of the following journal entries is needed to record this transaction?
a.
$\begin{array}{llr}
\text { Raw Materials Inventory } &3,500\
\text { WIP Inventory - Mixing} &&3,500\
\end{array}$

b.
$\begin{array}{llr}
\text {Finished Goods Inventory } &3,500\
\text { Raw Materials Inventory } &&3,500\
\end{array}$

c.
$\begin{array}{llr}
\text { WIP Inventory - Mixing } &3,500\
\text { Mixing Manufacturing Overhead } &&3,500\
\end{array}$

d.
$\begin{array}{llr}
\text { WIP Inventory - Mixing } &3,500\
\text {Raw Materials Inventory } &&3,500\
\end{array}$

e.$\text { None of the answer choices is correct.}$

Question

Frost Company produces cupcakes in large batches.Three departments are involved in the production process -- Mixing,Baking,and Packaging.Frost uses a process costing system.If the Mixing Department requisitioned direct materials to be used in production totaling $3,500,which of the following journal entries is needed to record this transaction?
a. 
$\begin{array}{llr}
  \text { Raw Materials Inventory } &3,500\
 \text {   WIP Inventory - Mixing} &&3,500\
\end{array}$

b. 
$\begin{array}{llr}
  \text {Finished Goods Inventory  } &3,500\
 \text { Raw Materials Inventory } &&3,500\
\end{array}$

c.
$\begin{array}{llr}
  \text { WIP Inventory - Mixing  } &3,500\
 \text { Mixing Manufacturing Overhead } &&3,500\
\end{array}$

d. 
$\begin{array}{llr}
  \text { WIP Inventory - Mixing  } &3,500\
 \text {Raw Materials Inventory  } &&3,500\
\end{array}$

e.$\text { None of the answer choices is correct.}$

Quizplus · Accepted Answer

When the Mixing Department requisitions raw materials, it is transferring materials from Raw Materials Inventory to the work in process (WIP) inventory. Therefore, the journal entry should debit WIP Inventory - Mixing and credit Raw Materials Inventory. Option D is the only choice that reflects this transaction. Option A is incorrect because it is missing the credit entry to Raw Materials Inventory. Option B is incorrect because it involves Finished Goods Inventory, which is not relevant to this transaction. Option C is incorrect because it involves Manufacturing Overhead, which would not be affected by a raw material requisition. Therefore, the best choice is D.

Frost Company Produces Cupcakes in Large Batches Raw Materials Inventory 3,500 WIP Inventory - Mixing3,500\begin{array}{llr} \text { Raw Materials Inventory } &3,500\\ \text { WIP Inventory - Mixing} &&3,500\\\end{array} Raw Materials Inventory WIP Inventory - Mixing​3,500​3,500​

Frost Company Produces Cupcakes in Large Batches $\begin{array}{llr} \text { Raw Materials Inventory } &3,500\\ \text { WIP Inventory - Mixing} &&3,500\\\end{array}$