If $20,000 direct materials are requisitioned for a job and $7,000 of indirect materials are requisitioned for general use, the debit to Work in Process Inventory should be for $select an option
Question
If 7,000 of indirect materials are requisitioned for general use, the debit to Work in Process Inventory should be for $select an option
Solution
The debit to Work in Process Inventory should be for $20,000.
Here's the step by step explanation:
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Direct materials are those materials that are directly involved in the production process and can be easily traced to individual jobs. In this case, the direct materials requisitioned for a job amount to $20,000. This amount is debited to the Work in Process Inventory because it represents the cost of the materials that are currently being used in the production process.
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Indirect materials, on the other hand, are those materials that are used in the production process but cannot be easily traced to individual jobs. In this case, the indirect materials requisitioned for general use amount to $7,000. This amount is not debited to the Work in Process Inventory. Instead, it is typically debited to the Manufacturing Overhead account, which accumulates all costs of production that cannot be directly traced to specific jobs.
So, the debit to Work in Process Inventory should only include the cost of the direct materials, which is $20,000.
Similar Questions
A materials requisition slip showed that direct materials requested were $30,000 and indirect materials requested were $6,000. The entry to record the transfer of materials from the storeroom is:Question 7Answera.DR Work in process inventory $30,000; DR Manufacturing overhead $6,000; and CR Raw materials inventory $36,000b.DR Work in process inventory $30,000; and CR Raw materials inventory $30,000c.DR Direct materials $30,000; DR Indirect materials $6,000; and CR Work in process inventory $36,000d.DR Manufacturing overhead $36,000; and CR Raw materials inventory $36,000
Multiple Choice QuestionThe journal entry to record indirect materials in production is to:Multiple choice question.debit Factory Overhead and credit Raw Materials Inventorydebit Work in Process Inventory and credit Factory Overheaddebit Raw Materials Inventory and credit Work in Process Inventorydebit Work in Process Inventory and credit Raw Materials Inventory
Since manufacturing costs (direct materials, direct labor, and overhead) are incurred in the process of manufacturing units of product, these costs are recorded in entries that include debits to:Multiple ChoiceThe Direct Materials Inventory, Direct Labor, and Manufacturing Overhead accounts.Expense accounts.The Work in Process Inventory account.
The recording of direct labor will result in a:Multiple choice question.debit to Work in Process Inventory and credit Factory Wages Payabledebit to Factory Overhead and a credit Work in Process Inventorydebit to Work in Process Inventory and a credit Factory Overheaddebit to Factory Wages Payable and a credit to Work in Process Inventory
The journal entry to record the allocation of factory overhead to work in process is:Multiple choice question.debit Work in Process Inventory and credit Cashdebit Cash and credit Factory Overheaddebit Work in Process Inventory and credit Factory Overheaddebit Factory Overhead and credit Work in Process Inventory
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