On January 1, Schaf Corporation had $23,000 of raw materials on hand. During the month, the company purchased an additional $54,000 of raw materials. During January, $50,000 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 $6,000. Required; 1. The journal entry to record the requisition from the storeroom would include a _____. Multiple Choice: O debit to Work in Process of $50,000 O debit to Raw Materials of $50,000 O credit to Manufacturing Overhead of $6,000 O debit to Work in Process of $44,000

Business · College · Thu Feb 04 2021

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The journal entry to record the requisition from the storeroom would include a debit to Work in Process of $44,000.

The correct journal entry is:

- Debit Work in Process $44,000 (for the direct materials used) - Debit Manufacturing Overhead $6,000 (for the indirect materials used) - Credit Raw Materials $50,000 (to record the reduction in raw materials)

Extra: When materials are used in a manufacturing process, they are typically categorized as either direct materials or indirect materials. Direct materials are those that can be directly traced to the production of a specific good or service. Indirect materials, on the other hand, are used in the production process but cannot be traced directly to any single product; they are minor items such as glue or screws.

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