On August 1, Shead Corporation had $29,000 of raw materials on hand. During the

Question

On August 1, Shead Corporation had $29,000 of raw materials on hand. During the month, the company purchased an additional $77,300 of raw materials. During August, $81,100 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 $5,000. 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

The credits to raw material account = $81,100

Raw material inventory $ 77,300 Cash $ 77,300 (To record purchase of raw material) Work in process inventory $ 76,100 Manufacturing overhead $    5,000 Raw material inventory $ 81,100 (To record material used for production)

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