During December at Ingrim Corporation, $74,000 of raw materials was 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

Business

Harper Cowan

21 December, 08:02

During December at Ingrim Corporation, $74,000 of raw materials was 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:

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Answers (1)

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Bethany Kidd · Answer 1

debit to Work in Process of $68,000

Explanation:

Direct material are always charged to the work in process and indirect materials are considered as the overhead for the product so, it will be debited to the Manufacturing overhead. Total issuance during the year is $74,000, which includes $68,000 of direct material and $6,000 of indirect material.

Journal Entry for this Transaction is

Debit Work in Process $68,000

Debit Manufacturing Overhead $6,000

Credit Raw Material Inventory $74,000