On August 1 Shead Corporation had 35000 of raw materials on
On August 1, Shead Corporation had $35,000 of raw materials on hand. During the month, the company purchased an additional $56,000 of raw materials. During August, $69,000 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. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The debits to the Manufacturing Overhead account as a consequence of the raw materials transactions in August total: $69,000 $6,000 $0 $63,000
Solution
Journal entry ;
So answer is b) $6000
| Date | account & explanation | debit | credit | 
| Work in process (69000-6000) | 63000 | ||
| Manufacturing overhead | 6000 | ||
| Raw material | 69000 | ||
| (To record raw material requisitioned) | 

