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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

Question

A materials requisition slip showed that direct materials requested were 30,000andindirectmaterialsrequestedwere30,000 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;DRManufacturingoverhead30,000; DR Manufacturing overhead 6,000; and CR Raw materials inventory 36,000b.DRWorkinprocessinventory36,000b.DR Work in process inventory 30,000; and CR Raw materials inventory 30,000c.DRDirectmaterials30,000c.DR Direct materials 30,000; DR Indirect materials 6,000;andCRWorkinprocessinventory6,000; and CR Work in process inventory 36,000d.DR Manufacturing overhead 36,000;andCRRawmaterialsinventory36,000; and CR Raw materials inventory 36,000

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Solution

The correct answer is:

a. DR Work in process inventory 30,000;DRManufacturingoverhead30,000; DR Manufacturing overhead 6,000; and CR Raw materials inventory $36,000

Here's the step by step explanation:

  1. When materials are requested, they are moved from the raw materials inventory to the work in process inventory. This is represented by the debit to the Work in Process Inventory account for $30,000.

  2. The indirect materials requested are costs that are not directly tied to production, but are still necessary for the manufacturing process. These costs are recorded under the Manufacturing Overhead account. This is represented by the debit to the Manufacturing Overhead account for $6,000.

  3. The total cost of the materials requested (30,000directmaterials+30,000 direct materials + 6,000 indirect materials = $36,000) is then credited to the Raw Materials Inventory account to show that these materials have been removed from inventory.

So, the journal entry to record this transaction would be:

  • Debit Work in Process Inventory $30,000
  • Debit Manufacturing Overhead $6,000
  • Credit Raw Materials Inventory $36,000

This problem has been solved

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