Question

During September at Renfro Corporation, $65,000 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 $8,000. The journal entry to accurately record this requisition would be: Multiple Choice Dr. MOH $57,000 Dr. WIP $8,000 Cr. Raw Materials $65,000 Dr. WIP $65,000 Cr. MOH $8,000 Cr. Raw Materials $57,000 Dr. WIP $57,000 Dr. MOH $8,000 Cr. Raw Materials $65,000 Dr. WIP $57,000 Dr. MOH $8,000 Cr. Direct Materials $65,000

Answer 1

Debit WIP $57,000

Debit MOH $8,000

Credit raw materials $65,000

Step-by-step explanation:

With regards to the above,

Indirect material used = $8,000 will be debited to manufacturing overhead [MOH]

Direct materials used =$65,000 - $8,000 = $57,000 hence will be debited to work in process account [WIP]

Raw materials will be credited by $65,000

The correct answer would therefore be;

Dr WIP $57,000

Dr MOH $8,000

Cr raw materials $65,000