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Suppose $20,000 of raw materials is withdrawn from the storeroom to be used In production. Of this amount $15,000 consists of direct materlals and $5,000 consists of Indirect materials.

What account or accounts will be debited?

a.Raw Materials $15,000 and Manufacturing Overhead $5,000

b.Work in Process $15,000 and Raw Materials $5,000.

c.Manufacturing Overhead $15,000 and Work in Process $5,000

d.Work in Process $15,000 and Manufacturing Overhead $5,000

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hyderali230

Answer:

d.Work in Process $15,000 and Manufacturing Overhead $5,000

Explanation:

Direct material is charged to work in process, while the indirect material is charged to manufacturing overhead account. The journal Entry will be as follows

                                                DR.          CR.

Work in Process                   $15,000

Manufacturing Overhead    $5,000

Raw Material Inventory                       $20,000

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