Question

Boysenberry Company manufactures vacuum cleaners and follows the first-in, first-out (FIFO) method to record inventories. The journal entry to record requisitions of materials by the Assembling Department for the month of June will include:

a.a debit to Work in Process—Assembling and a credit to Sales.
b.a debit to Work in Process—Assembling and a credit to Notes Payable.
c.a debit to Work in Process—Assembling and a credit to Materials.
d.a debit to Work in Process—Assembling and a credit to Accounts Receivable.

Answer 1

The journal entry for the requisition of materials by the Assembling Department involves debiting the Work in Process—Assembling account and crediting the Materials account, reflecting the transfer of materials into the production process.

Step-by-step explanation:

In accounting, recording the requisition of materials for use in production involves transferring the cost of those materials from the Materials account to the Work in Process account that is specific to the department utilizing these materials. In this case, the Boysenberry Company would record the movement of materials to the Assembling Department by debiting the Work in Process—Assembling account, thereby increasing its balance, and crediting the Materials account, thereby decreasing its balance.

This practice reflects the use of materials in the production process, and the entry would be typically made at the time the materials are issued to the production department. The first-in, first-out (FIFO) method mentioned relates to how the company values its inventory when items are sold or used, but it does not change the basic nature of the journal entry.

The correct final answer for the journal entry to record requisitions of materials by the Assembling Department for the month of June is: Debit Work in Process—Assembling and Credit Materials.