On August 1, Shead Corporation had $34,200 of raw materials on hand. During the
ID: 2462539 • Letter: O
Question
On August 1, Shead Corporation had $34,200 of raw materials on hand. During the month, the company purchased an additional $77,300 of raw materials. During August, $84,700 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 $7,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The credits to the Raw Materials account for the month of August total:
On August 1, Shead Corporation had $34,200 of raw materials on hand. During the month, the company purchased an additional $77,300 of raw materials. During August, $84,700 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 $7,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The credits to the Raw Materials account for the month of August total:
Explanation / Answer
It is assumed indirect material of 7000 is purchased in current month
Credit to raw material account is 77700
Date Particulars Debit credit Raw material inventory 70300 work overhead pool 7000 To accounts payale 77300 Work in process 84700 To work overhead pool 7000 To raw material inventory 77700Related Questions
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