During February at Iniquez Corporation, $79,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The journal entry to record the requisition from the storeroom would include a:

Question

Quizplus · Accepted Answer

The journal entry to record the requisition from the storeroom would include a debit to Work in Process for the total cost of the direct materials used in production, which is $79,000 - $4,000 (indirect materials) = $75,000. Therefore, the correct choice is B, which is the only option that includes a debit to Work in Process for $75,000. The other options are not accurate because they either include a credit to Manufacturing Overhead or a debit to Raw Materials for the total cost of all materials, including indirect materials.

During February at Iniquez Corporation, $79,000 of Raw Materials Were