On March 1, Metevier Corporation had $37,000 of raw materials on hand. During the month, the company purchased an additional $62,000 of raw materials. During March, $69,000 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 $6,000. 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 amount of raw materials used in production, which is $69,000. However, since $6,000 of those raw materials were indirect materials, the direct materials used in production would only be $63,000. Therefore, the correct journal entry would be a debit to Work in Process for $63,000 and a credit to Raw Materials for $63,000. The other answer choices do not accurately reflect the use of both direct and indirect materials in production.

On March 1, Metevier Corporation Had $37,000 of Raw Materials