Question

Suppose $20,000 of raw materials is withdrawn from the storeroom to be used In production. Of this amount $15,000 consists of direct materlals and $5,000 consists of Indirect materials.

What account or accounts will be debited?

a.Raw Materials $15,000 and Manufacturing Overhead $5,000

b.Work in Process $15,000 and Raw Materials $5,000.

c.Manufacturing Overhead $15,000 and Work in Process $5,000

d.Work in Process $15,000 and Manufacturing Overhead $5,000

Answer 1

d.Work in Process $15,000 and Manufacturing Overhead $5,000

Step-by-step explanation:

Direct material is charged to work in process, while the indirect material is charged to manufacturing overhead account. The journal Entry will be as follows

DR. CR.

Work in Process $15,000

Manufacturing Overhead $5,000

Raw Material Inventory $20,000