On April 1, Stelter Corporation had $35,000 of raw materials on hand. During the
ID: 2461008 • Letter: O
Question
On April 1, Stelter Corporation had $35,000 of raw materials on hand. During the month, the company purchased an additional $61,000 of raw materials. During April, $71,000 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 $7,100. Prepare journal entries to record these events. Use those journal entries to answer the following question: The credits to the Manufacturing Overhead account as a consequence of the raw materials transactions in April total:
Explanation / Answer
The credits to the Manufacturing Overhead account as a consequence of the raw materials transactions in April total: $7100
# Account Type $Debit $Credit 1 Raw materials Inventory 61000 Accounts payable / Cash 61000 (For raw materials purchased) 2 Work-in-process 63900 Raw Materials inventory 63900 (For direct materials introduced to production) 3 Manufacturing overhead account 7100 Raw Materials inventory 7100 (For indirect materials introduced to production)Related Questions
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