The balance in Clay Company’s Raw Materials Inventory account was \($45,000\) at the beginning of April and \($38,000\) at the end of April. Raw materials purchased during the month totaled \($55,000.\) Clay used \($14,000\) in indirect materials for the month.

Required

a. Prepare a schedule of raw materials placed in production for the month of April.

b. Using the information in the schedule of raw materials placed in production, prepare separate journal entries to record the following items.

(1) Raw materials purchased for the month, assuming all purchases were on account.

(2) The transfer of direct materials into production.

(3) The transfer of indirect materials into production.

c. Prepare a T account for Raw Materials Inventory and include the beginning balance for April. Post the appropriate items from the journal entries in part b to this account, and calculate the ending balance in Raw Materials Inventory.