Question

A materials requisition slip showed that direct materials requested were $65,000 and indirect materials requested were $8,000. The entry to record the transfer of materials from the storeroom is

Select one:

A.

Work In Process Inventory	65,000
Raw Materials Inventory		65,000

B.

Direct Materials	65,000
Indirect Materials	8,000
Work in Process Inventory		73,000

C.

Manufacturing Overhead	73,000
Raw Materials Inventory		73,000

D.

Work In Process Inventory	65,000
Manufacturing Overhead	8,000
Raw Materials Inventory		73,000

E. None of the above.

Answer 1

Direct material is transferred to work in process and indirect material is transferred to manufacturing overhead.

When direct material is transferred, work in process is debited and raw material inventory is credited. When indirect material is transferred, manufacturing overhead is debited and raw material inventory is credited.

Work In Process Inventory	65,000
Manufacturing Overhead	8,000
Raw Materials Inventory		73,000

Option D.

answered by: anonymous