During July at Tiner Corporation,$74,000 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 $7,000.The journal entry to record this requisition would include a debit to Manufacturing Overhead of:

Question

Quizplus · Accepted Answer

The Manufacturing Overhead account is used to capture all indirect costs related to production, including indirect materials. Therefore, the journal entry to record the raw materials requisition would include a debit to Raw Materials for $74,000 and a credit to Accounts Payable for $74,000, as well as a separate debit to Manufacturing Overhead for the indirect materials cost of $7,000. This means that the correct answer is option C.

During July at Tiner Corporation,$74,000 of Raw Materials Were Requisitioned