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16 December, 15:35

Suppose $20,000 of raw materials is withdrawn from the storeroom to be used In production.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

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  1. 16 December, 15:43
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    d. Work in Process $15,000 and Manufacturing Overhead $5,000

    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
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